Gold Rebounds, But Still Headed for Weekly Losses
Gold prices (XAU/USD) recovered some of their losses on Friday, as the precious metals market rebounded, driven by demand for safe-haven assets. However, gold remains on track for its first weekly decline in five weeks, as escalating Middle East conflicts lifted oil prices, reigniting inflation concerns and reducing bets on a Fed rate cut.
From the interest rate market perspective, rising energy inflation risks are making market participants more cautious in pricing in easing. At the same time, a strengthening dollar and rising Treasury yields are restraining factors for gold, increasing the opportunity cost of holding non-yielding assets. Several Fed officials have also left open the possibility of further tightening if inflation remains above target.
The gold price at the time of this analysis's release was at $5,119.
- Buy if the price moves above $5,115.
- Sell if the price moves below $5,125.
Resistance 2: $5,140.
Resistance 1: $5,130.
Support 1: $5,110.
Support 2: $5,100.
Disclaimer
This article is analytical in nature and is not a definitive reference. Please consider the impact of fundamental and technical developments on trading before making any investment decisions. (Cp)
Source: Newsmaker.id
