Posted 13th November 2023

Gold Price News: Gold Remains Under Pressure After Losing Support Level Of $1,950

After the recovery seen in the final part of October, the gold price is continuing to ease slightly. This decline could be explained by a mix of factors. In particular, last week US Fed chair Powell’s remarks have been seen as relatively hawkish. Markets are still facing a strong U.S. Dollar, combined with the rebound of Treasury yields. In other words, rate cuts are still far away.

KAU 1-hourly

Moreover, as we pointed out in some recent comments, the recovery seen in the final part of October (from $1,820 to $2,000 an ounce) has been extremely quick and gold is retracing due to some apparent profit-taking. 

From a technical perspective, the breakdown of the support zone of $1,950 represented a weakness signal, confirming the bearish pressure of the last few days. The next key levels are placed at $1,920 and $1,900

Despite the recent decline, the uncertainty remains significant. Firstly, the geopolitical scenario remains incandescent, as the conflict between Israel and Hamas appears far from an end. Moreover, in case the U.S. and global economies will slow down, the Federal Reserve and all major central banks could be forced into a quick U-turn on monetary policy, starting to cut rates in 2024 after over two years of interest hikes. Of course, this scenario could represent another bullish catalyst for the yellow metal.

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