GOLD
After briefly dropping below $1,900 on Thursday, gold prices are once again approaching that key support level. As central banks signal further interest rates hikes, pushing bond yields up and diminishing the shine of gold, the opportunity cost of holding bullion increases. At the same time, economic data from the US has been surprising to the upside, showing a resilience that dents the haven appeal of the precious metal and creates scope for further monetary tightening from the Fed. With the outlook for gold turning bearish, losses could accelerate, as a sustained drop below the $1,900 level could trigger further technical selling.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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