The gold price witnessed a decline for the seventh consecutive day yesterday.
Following the breach of the support level at $1,890, bearish momentum intensified, propelling the gold price to plummet swiftly from $1,930 to $1,820 within a few days.
Low volatility in early September has created the potential for larger price movements. Overall, the technical analysis continues to indicate a bearish trend, although the support zone at $1,820 and oversold conditions could prompt a rebound.
On the macroeconomic front, the August US JOLTS Job Openings data, released yesterday, came in at 9.61 million, beating forecasts of 8.80 million and underlining economic strength. The data bolstered the US dollar and pushed bond yields higher, challenging gold further. The bearish pressure on gold will likely persist until market clarity emerges regarding the peak of US interest rates.
Markets are now waiting for the other key US Job data: the ADP, which will be released later today, and, particularly, the US non-farm payrolls and the unemployment data due for release on Friday. Figures above expectations could increase the chances of one or more further rate hikes from the Federal Reserve, while signs of economic slowdown might lessen these chances, potentially benefiting gold.
Carlo is an external market analyst for Kinesis Money. With a credential background in Economic Finance and International Exchange (MA), Carlo’s critical analysis of gold and silver markets’ performance is frequently quoted by leading publications such as Forbes, Reuters, CNBC, and Nasdaq.
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.
Read our Editorial Guidelines here.
