Gold struggles near $5,000 as Oil surge caps upside
Gold prices are testing the critical $5,000 level as macro forces pull the market in opposing directions. Fawad Razaqzada, Market Analyst at FOREX.com, explains how rising bond yields, a stronger U.S. dollar, and elevated oil prices are weighing on gold, while geopolitical risks and central bank demand provide support.
U.S. dollar's pullback did not provide significant support to gold markets today.
Gold has fallen in the last four sessions, and today it wasn't looking too great either as it continued to coil near that $5K hurdle. The metal is now on its third week of declines, though it was bouncing back slightly at the time of writing.
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Gold managed to fall below the support of 4996 and managed to print a low around 4967. As we see from the Intraday chart, a chance for a trading zone between support 4960 and resistance 5065 could hold the market.
Gold holds the $5,000 floor as Middle East tensions and the Strait of Hormuz closure drive safe-haven demand. Will war risks outweigh the rallying US Dollar?
Gold prices hit a record high of $5,600 earlier this year, while slowing U.S. economic growth, rising Middle East tensions, and strong technical momentum could support a continued rally toward $6,500.
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