Posted 8th June 2022

Gold Set For Period of Oscillation Around $1,850 Awaiting Fresh Drivers

gold bullion markets price

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.

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.