Gold reached a two-month high of $1,853 per ounce on Tuesday, but plummeted on Wednesday after the Fed’s announcements. The metal continued trading lower on Thursday, testing its $1,800 per ounce resistance. It is currently trading below this level, near $1,793 per ounce.
Gold price has been supported by the rising tensions between Russia and Ukraine and also by the recent stock market turmoil, as investors sought a safe-haven asset. The Federal Reserve’s hawkish announcements on Wednesday though, put an end to the metal’s advance. The US dollar and treasury yields climbed after Fed Chair Powel’s speech, putting pressure on gold. Gold does not pay dividends or interest, so it loses appeal as an investment when real yields rise.
If the price of gold rises again, it may find resistance at $1,829 per ounce and further up at $1,877 per ounce, while if the price of gold decreases further, support may be found at 1,782 per ounce. This week, gold price is expected to show some volatility, due to mounting tensions between Russia and Ukraine.
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