Gold Price News: Bullion waiting for new directionality

The technical outlook for gold has weakened slightly in the past few days, although the precious metal is still searching for clear directionality. Indeed, the bullion price is playing with the support zone at $1,930, in the lower part of the trading range of the last two weeks.

This recent moderate decline can be attributed to the strength of the latest US economic data, which have underscored the economy’s robustness. The US dollar has also experienced a modest recovery in recent days, gaining strength against several major currencies, notably the Japanese yen.

The gold price is also suffering from the hawkish rhetoric shown by central banks in recent meetings. Despite inflation continuing to slow-down, the policymakers have shown a solid intent to continue the tightening process, with further rate rises expected in the forthcoming meetings. Currently, rates are at 5.25% in the US (after the Federal Reserve kept them unchanged in the last meeting, after ten consecutive hikes) and at 3.75% in the Eurozone. The Bank of England is expected to raise rates from 4.5% to 4.75% in tomorrow’s meeting. In short, the overall scenario for gold and precious metals remains challenging. But gold, so far, has shown solid resilience, staying in the $1,930-1,980 range of the last few weeks. Moreover, the price is at just six percentage points below its historical record of $2,070. This is again proving the solid interest investors have in 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.