Gold's precipitous price decline over the last four months doesn't mean the rally is over for the year, and central bank demand will drive the precious metal all the way back to the edge of $5,000, according to Samantha Dart, co-head of global commodities research at Goldman Sachs."Gold is not done," Dart said in her team's latest research note.
Here's what 45 years of data on death crosses in gold can tell us about the path ahead.
Gold prices are trading at session highs after the latest data showed a mixed picture for U.S. consumer sentiment this month.The Consumer Confidence Index rose to 91.2 in June, below economists' consensus forecast for a 94.2 reading but above the downwardly revised 90.6 print from May, the Conference Board announced on Tuesday.
The gold market is trying to attract fresh buying momentum, but support at $4,000 an ounce remains at risk as the U.S. labor market continues to show resilience, with the number of available jobs holding relatively steady last month.
Gold faces a critical test as Fed Chair Warsh and the U.S. jobs report could reshape rate expectations, the dollar, yields, and XAU/USD.
The precious metal may have the calendar on its side, according to an analyst
Gold fell in early Asian trade. The yellow metal was likely weighed down by a hawkish repricing in the dollar after the Federal Reserve's latest meeting, Maybank said.
Spot gold and silver prices are lower after the North American cash-market close Monday, as higher oil prices and firmer Treasury yields kept traders focused on Federal Reserve tightening risk rather than safe-haven demand tied to renewed U.S.-Iran tensions.
Gold prices tumble as rising oil boosts Fed rate hike bets. Can the Death Cross and widening moving averages drive gold even lower?
Central bank demand has been a key driver behind gold's multi-year rally to an all-time high of $5,600 an ounce, and the latest World Gold Council survey points to continued buying from the official sector.
Chinese regulators, including customs officials and the central bank, are proposing a major overhaul of the country's existing import and export regulations governing gold and gold products, according to a new report published Sunday.The proposed new gold regime aims “to streamline administration, facilitate trade, and improve the management of gold carried across the border by individuals,” the Xinhua report stated.
Gold notched a notable turn in June, slipping into negative year-to-date territory after a sharp pullback from its January peak. The decline marked a sharp break from the metal's powerful 12-month rally, as a stronger U.S. dollar, higher Treasury yields, easing safe-haven demand tied to the Iran conflict, and lingering inflation concerns all appeared to weigh on prices.