A new week hasn’t provided any relief for gold after one of its worst weeks in the last year has now pushed the price down below $1,800 an ounce for the first time since the start of February.
Gold’s slump has been driven by concerns that the measures implemented by central banks will not be sufficient to tackle high escalation. The Federal Reserve is set to implement a series of interest rate hikes over the coming months, having already raised rates by the most considerable amount in over 20 years earlier this month.
Live Gold Price - $/oz
This week brings the latest inflation data from the UK with the print likely to show that the pace at which consumer prices are rising is still not slowing down. Across the pond, the hope is that April’s US figure will represent the high point and that inflation will slow down from this point.
However, markets remain very jittery with a huge amount of volatility last week set to continue into this week based on gold’s initial plunge in early Monday trading. Having now fallen through the psychologically important threshold of $1,800 an ounce and with the hawkish monetary policy more likely to strengthen than weaken, it is hard to see where gold can now find a short-term foothold.
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