The current gold price is falling slowly, as you can see from the chart above. The price has declined from $1,260 to just $1,240 this week, which is a mere $20 away from the key $1,200 mark. If this level does not hold, we could see a sharp price drop in the coming weeks, as the price acts as a strong signal to market participants that the bull market is nearing the end.
Gold Price Slips Below Key Mark to End Week. Gold price slipped to lower limit of key support for more than a week since the price fell below the key level of $1,400. We have been testing the $1700-1725 support level for more than a month. The price is now below that level and the trend-line of the price is downward. The next level is $1550. If the price breaks the trend-line of the price, gold price may test the $1250 level in the near future.
The US Dollar Gold price fell below the key 1,300 mark today to end a week of losses. The price was at 1,292.85 around 09:00 UTC on Wednesday. This marks the lowest price since July 6, when the price fell below the key 1,300 mark. The price fell as low as 1,293.05 in the early hours of Wednesday morning, before recovering to 1,300.00 a few hours later. The price fell to the low 1,290.00 mark on Tuesday, before recovering to finish the week at the low 1,293.85 mark.. Read more about gold price drop today and let us know what you think.
First Weekly Loss in a Long Line of Possibilities
Multiple Factors Contribute to a Difficult Week
After the ECB’s support, all eyes are on the US PMIs.
The price of gold has fallen below the key benchmark of $1800 in early trading today, capping a week that has been dramatic not so much in terms of commodities news and the market, but certainly on Wall Street, which has impacted commodity prices, including gold and other precious metals, which are also down on the week. As the market begins to look forward, many variables such as COVID cases, USD forex market strength, national internal problems, and treasury rates have all played a continued part in the week’s moves.
Gold is on the verge of a rare weekly loss.
Despite the fact that gold’s weekly trading has been volatile at times, the precious metal has not recorded an overall weekly loss in the last five weeks. This is a figure that is becoming more likely to alter, as prices began the European session lower. Gold is now trading slightly around $1800, which may be a significant barrier to overcome, though it has recovered from a similar drop earlier this week.
Traders are still exhibiting some tenacity in trading gold and other precious metals, even if the week ends with a loss. None of them are in the red, and they’re all up in the long run. There’s a sense of prudence or a belief that traders should keep a foot on both sides of the line until the broader economic picture clears up.
More Moving Commodities and Dollar Strength
It’s impossible to pinpoint just one major element driving gold and other commodity prices. Instead, there are a slew of problems to deal with. The first is a higher US Dollar, which has been fueled by the stock market’s explosive start to the week. The Dow Jones dropped more than 700 points to begin the week, giving the Dollar a boost.
Normally, a higher Dollar does not augur well for gold or other precious metals, but the price of gold has recovered rapidly from a low earlier in the week, as has the stock market. Other issues to discuss are rising US Treasury rates and the overall topic of COVID case concern.
Data from the United States is brought into sharper focus.
The US PMIs for manufacturing and services, which are coming soon, may be the next big mover for gold and other commodities. Traders will be watching them closely, especially in terms of inflation.
Other factors to consider include how the equivalent EU data looks, as well as how the ECB’s policy adjustments are implemented and how the bloc’s promise to keeping interest rates low plays out in the future. Until then, commodities prices are dependent on current mood, which seems to be improving towards the conclusion of the week.
As expected, gold prices slipped below their 200 day moving average on Friday and ended the week below their 200 day moving average. This is the first time in a month that gold prices have fallen below the 200 day moving average. Gold has dropped every month since February 2017 when it broke above the 200 day moving average.. Read more about biggest gold price drop history and let us know what you think.
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