News

Gold prices showed little movement in the early hours of Asian trading, with markets on alert over the inflationary impact of the war with Iran. Spot gold rose by 0.1%, but remained close to its lowest levels since early April.

Weighing on the price of gold are growing concerns about inflation and high interest rates, which are keeping central banks on a tight monetary policy stance and reducing gold’s appeal.

Signs of progress in the peace talks have had little impact, whilst rising bond yields and a stronger dollar continue to put pressure on share prices.

[Source: based on data from Investing.com]

Gold falls below $4,550 an ounce, giving back some of its recent gains in a context of high uncertainty. Markets remain cautious despite President Donald Trump‘s openness toward possible negotiations with Iran.

Weighing on prices are primarily inflationary pressures and expectations of a continued restrictive monetary policy by the Federal Reserve, which are limiting demand for the precious metal.

[Source: Investing.com]

Gold and silver are under pressure in the short term due to inflation fears, rising yields and higher oil prices. Gold remains within the support range of $4,400 to $4,500, but it needs to break above $5,000 to confirm the next major upward move. Silver is more volatile, and the $72 level is crucial to monitor as a starting point.

Overall, the short-term trend for both metals remains in a consolidation phase, whilst the general direction remains bullish if key support levels hold.

[Source: FX Empire]