Gold stuck even as dollar weakens

Gold traded sideways along the $1,820 per ounce early on Thursday, much as it did on Wednesday, despite the dollar’s weakness. With real yields on the rise, gold does not seem equally attractive as an investment, since it doesn’t pay dividends or interest. There is also increased risk-appetite at the moment, which doesn’t favour gold, as it is considered a safe-haven asset.

If the price of gold climbs, it may find resistance at $1,831 per ounce, while if the price of gold decreases, the $$ 1,800 level may provide support for the price of gold, while further down, support may be found at 1,783 per ounce. 

Traders should keep an eye on upcoming economic and inflation indicators in the US and especially on the Monthly Retail and Core Retail Sales, as well as the Preliminary UoM Consumer Sentiment data that are scheduled to be released today. Gold traders should also keep an eye on real yields, since rising real yields negatively affect the price of gold.

TRADE GOLD

The content provided in this material and/or any other material that this content is referred to, whether it comes from a third party or not, is for information purposes only and shall not be considered as a recommendation and/or investment advice and/or investment research and/or suggestions for performing any actions with financial products or instruments, or to participate in any particular trading strategy and cannot guarantee any profits. Past performance does not constitute a reliable indicator of future results. TopFX does not represent that the material provided here is accurate, current, or complete and therefore shouldn't be relied upon as such. This material does not take into account the reader's financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of TopFX, no reproduction or redistribution of the information provided herein is permitted.

Written by:
Myrsini Giannouli

Share the article: