Gold is holding steady around $1,975 an ounce as the markets await progress on the US debt ceiling discussions with House Speaker Kevin McCarthy and President Joe Biden set to resume their talks later today.
Although gold has fallen back from the near record high it surged to earlier in the month, it remains at a level that the precious metal has only traded at a smattering of times in its long history as market confidence remains fragile and investors are seeking gold to manage their risk.
With the biggest headwind of the last year, the Federal Reserve’s consistent hiking of interest rates, seemingly drawing to a close and a trading environment that is still risk averse, gold has found significant support a little below the psychologically important threshold of $2,000 an ounce. While a fresh push above $2,000 looks unlikely, assuming the US debt ceiling talks do reach agreement, gold looks well supported and looks set to continue trading comfortably above $1,950 in the medium-term.
Later today the markets will be closely monitoring the words of the three Fed officials speaking to gain a better insight into the US central bank’s next move on interest rates as well as poring over Wednesday’s release of the minutes from the committee’s meeting earlier in the month.
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.
