Gold slid to a three-month low on Friday as the strongest dollar in two decades continued to dampen demand for dollar-priced bullion and the yellow metal fell for the fourth week in a row.
“Gold price vulnerable to a potential test of support at $1,780”
In volatile price action, spot gold price dropped 1.02% at press time to $1,802.8 It is hovering near its lowest level since Feb. U.S. gold futures, on the other hand, were last traded at $1,802.8, down 1.19%. Jeffrey Halley, senior analyst at OANDA, comments:
Gold support falling at $1,835 and other precious metals selling overnight leaves gold vulnerable to deeper losses and a potential test of $1,780 support.
Cryptokoin.com As concerns persist that the steps taken by the US Federal Reserve to curb inflationary pressures will squeeze global economic growth and increase the currency’s safe-haven appeal, the dollar Thursday The day approached its highest level in 20 years.
“This will create a double return problem for gold investors”
The last drop of gold, Russia’s last fall in Ukraine in February It almost wipes out the gains from a safe-haven demand-driven rally after the US invasion. As we reported on Kriptokoin.com , with the Russian invasion of Ukraine, the gold price approached record levels in mid-March. Gold bullion has lost nearly 4% so far this week, its biggest loss in two months.
Last week, the US central bank increased its benchmark overnight rate by an aggressive half percentage point. The precious metal is sensitive to rising US short-term interest rates and bond yields, raising the opportunity cost of holding it. SPI Asset Management managing partner Stephen Innes predicts:
Nominal yields will also climb, creating a double return problem for gold investors as Fed inflation indicators remain hawkish until they drop.
