Posted 7th July 2023

Gold Price News: Strength of Support at $1,900 Holds Back Bearish Tide

The strength of support around the key threshold of $1,900 an ounce is keeping gold elevated despite the likelihood of more interest rate rises to come, particularly if today’s US jobs data confirms the world’s largest economy remains in good health.

While the trend for gold has undoubtedly been downward ever since the price peaked at close to $2,050 an ounce back in early May, the resilience that gold has shown ever since touching $1,900 in late June highlights the fragile confidence on the broader equities market with investors keen to hold on to their golden safety blanket.

gold price chart kinesis exchange
Gold ($/g) – 3-month view – from Kinesis Exchange

The stubbornness of inflation is forcing central banks on both sides of the Atlantic to keep on hiking interest rates with European Central Bank President Christine Lagarde’s recent comments on the amount of work the bank still needs to do is interpreted as a guarantee of a further increase to the ECB’s benchmark rate when it meets later this month. 

Meanwhile in the US, today’s non-farm payrolls and unemployment data are expected to show the jobs market remaining resilient in the face of a year-long campaign of rate hikes and therefore giving the Federal Reserve further room to implement at least another increase before interest rates reach their peak. 

Yet despite all this hawkish positioning by central banks, the continued falls on equities markets are keeping gold supported at $1,900 proving an unbreakable barrier for the time being. How much longer the dam manages to hold back the bearish tide of water will largely depend on how aggressive investors feel the Fed will be in the wake of today’s jobs figures.


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