Gold Strengthens, Buyers Begin to Dominate the Market
Gold prices continued to strengthen on Wednesday (July 22nd), supported by dip-buying. Bullion rose 1.6% and broke through the US$4,140 per troy ounce area after rising 1.7% in the previous session.
Silver also strengthened, approaching US$60 per troy ounce. This rise in the precious metal indicates a return of buying interest after recent selling pressure subsided.
Analysts believe this gold price movement could signal a breakout after volatility declined sharply in recent days. The US$4,000 area appears to have been successfully held as a key psychological level, allowing buyers to gain more confidence in re-entering the market.
Gold's strengthening occurred amid escalating tensions between the United States and Iran. US President Donald Trump has dampened the chances of swift talks with Iran after the two countries exchanged attacks for 11 consecutive days, while the Houthi group in Yemen has also threatened Red Sea shipping lanes.
As for the market impact, gold still has the potential to move positively as long as the US$4,000 area holds and ETF buying flows return. However, rising oil prices due to the Middle East conflict still require vigilance, as they could trigger inflation and strengthen expectations of high interest rates from the Fed. If the US dollar remains stable and selling pressure continues to ease, XAU/USD has the potential to retest the US$4,140–US$4,150 area. (arl)
Source: Newsmaker.id
