Wednesday is set to provide more clarity on the stance of central bankers on both sides of the Atlantic with the publication of the minutes from the recent Federal Open Market Committee, the European Central Bank publishes its Financial Stability Review as well as speeches from the governors of the central banks of Austria and Finland.
The market is currently digesting the true state of the global economy with inflation remaining a concern and investors analysing whether central banks are adopting the right policies to bring it under control.
Live Gold Price - $/oz
In this climate gold initially enjoyed this readjustment phase, gaining for five consecutive sessions to trade above $1,860 an ounce. Wednesday has so far seen gold’s price dip a little to nearer $1,850, suggesting that the precious metal is settling on its correct level.
Inflation, the ongoing war in Ukraine and the desire for haven assets in the face of a falling stock market are all supportive factors for gold, while the prospect of a series of interest rate hikes by central banks over the summer remains the source of considerable resistance for this non-yield bearing asset. As such, gold is likely to oscillate around the $1,840-$1,860 an ounce range until there is a fresh driver to shake markets up once again.
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