Posted 5th July 2023

Gold Price News: Concerns Over Global Economy Keeps Gold Above $1,900

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Gold continues to find sufficient support to keep it comfortably above $1,900 an ounce even in the face of impending interest rate rises by central banks around the world. 

Fragile market confidence and a dip in equities on the back of concerns about the health of the global economy has seen investors keen to keep hold of their safe haven gold assets. China is the latest country to publish underwhelming economic data and investors are concerned that central banks’ aggressive stance to curb stubbornly high inflation will tip economies into recession.

gold news wednesday 5th July

As such, gold finds itself in a curious position where the prospect of further interest rate hikes is detrimental to its medium-term outlook yet that same negative factor is almost a supportive one as the concern is that the hikes will be detrimental to equities and therefore supportive for gold’s haven appeal. 

Stuck between these pull and push factors, recent price moves have shown that there remains significant support for gold around the $1,900 threshold. Therefore, while it is hard to see gold climbing in this environment where interest rates still have further to rise, the lack of confidence in the health of the global economy looks set to keep gold above $1,900 for a while longer yet.

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