Posted 7th June 2023

Gold Price News: Gold Still Holding Up Well Despite Near Bull Stock Market

market analysis gold

Gold is continuing to hold up well even in the face of an ever more optimistic equities outlook with the S&P 500 Index close to entering a bull market.

Gold’s ability to keep trading comfortably above $1,950 an ounce suggests that while investors and traders may be feeling more confident now then they have been for much of the year, there remains a lingering concern that the economy isn’t fully out of the woods yet.

So much is riding on the Federal Reserve’s meeting next week where a much-anticipated pause on interest rate hikes would provide markets with the confirmation needed that the central bank policy will become more accommodative over the second half of the year. 

In such a scenario, gold and equities are both likely to benefit as it would ease the pressure on gold, which typically struggles at times of rising interest rates, as well as help companies with their borrowing costs. However, over time a bullish market is likely to reduce gold’s appeal and see it struggle to hold above $1,900 as the year progresses.

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.