Gold started the new week declining to $1,752 per ounce, in line with the weakness shown last week.
Overall, the scenario remains complex as investors try to predict and anticipate the Federal Reserve’s next moves. The solid data released last week, with numbers highlighting the strength of the U.S. job market, generated a new rebound of the greenback and the pair EUR/USD is now trading close to parity.
Moreover, the yields of the U.S. 10-year treasuries recovered, increasing the bearish pressure on the precious metal. Gold lost around 2%, falling from $1,800 to $1,760, while silver and platinum lost respectively 8% and 7%.
Looking at fundamentals, investor interest in the physical metal is still strong, particularly in Asia, while we have seen an outflow from the ETFs.
From a technical point of view, gold is now close to the important support zone of $1,750, while the next key levels to monitor are placed at $1,720 and $1,680. On the other hand, we could see a trigger to the upside if the price rises above $1,790 and if it breaks above the resistance placed at $1,820.
With a credential background in Economic Finance and International Exchange (MA), his critical analysis on gold and silver’s markets performance is frequently quoted by leading publications, week-on-week.
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