Gold is holding up surprisingly well given the hawkish rhetoric from central bankers both in Europe and the US that point to further interest rate rises still to come.
The fact that gold is still able to trade above $1,950 an ounce, a level that remains very high from a historical perspective, demonstrates that investors still remain cautious and reluctant to fully commit to a risk on trading attitude.
Gold’s safe haven appeal may have dimmed slightly since the US banking crisis of March but concerns over the prospect of central banks’ aggressive stance to tackle persistently high inflation tipping economies into recession have kept gold supported.
Gold’s high for the year may be behind it but it looks like the slide towards $1,900 an ounce will be a slow one with plenty of underlying support remaining.
Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience in writing about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News.
As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewable energy and the challenges of avoiding greenwash while investing sustainably.
This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.
