Gold looks set to continue its oscillation either side of $1,850 an ounce while it awaits a fresh driver to shake it out of its current narrow range.
Inflation remains a dominant concern for markets and governments alike with all eyes on the latest data due out from the US on Friday. In this context, gold has found itself being pulled in two equally strong contrasting directions, resulting in the status quo of the price around $1,850 an ounce.
Live Gold Price – $/oz
For investors looking for a store of value to ride out this inflationary storm, gold has obvious appeal given its proven value to hold its relative buying power over the course of multiple centuries. However, against this are the hawkish measures being adopted by central banks across the globe to try and curb rising consumer prices.
Earlier in the week, Australia announced a greater-than-expected interest rate hike while next week the US Federal Reserve and the Bank of England are both expected to issue another increase in their benchmark rates. This climate of rising rates is making yield-bearing assets such as bonds more attractive than physical gold and providing a firm ceiling for the precious metal’s potential gains.
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 greenwashing while investing sustainably.
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