Posted 3rd July 2023

Gold Price News: $1,900 Proving Significant Support for Gold For Time Being

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Gold is still just about holding above $1,900 an ounce despite the bearish pressure the precious metal finds itself under with central banks set to implement further interest rate rises in the coming weeks. 

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The fact that gold has been able to continue trading at such elevated levels highlights the lack of confidence investors have on the true health of the global economy and equities markets. Today’s positive start to the third quarter on stock markets still has a conditional fear to it that data may well turn negative later on in the period and this is keeping gold well supported despite hawkish rhetoric from central banks.

This support however is only able to slow gold’s decline rather than keep it up indefinitely as the reality of another interest rate hike by the Federal Reserve expected later this month with the prospect of at least one more after it does reduce gold’s appeal. 

So far $1,900 has proven a strong support level for gold but if and when this threshold finally gets broken through, the price could drop significantly with the bearish factors comfortably outweighing the bullish ones.

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.