Gold: Inflation shock weighs on haven metal – TD Securities
Gold markets are losing ground amid geopolitical uncertainty.
It's been a fairly risk-off session across the markets today, with stocks, crypto and gold all coming under pressure. The main drivers have been rising oil prices and a stronger US dollar.
Michael Boutros, Senior Technical Strategist at FOREX.com, breaks down gold's sharp selloff as prices approach a critical multi-timeframe support zone. With gold down nearly 7% from its monthly high, the market is testing key levels that could define the next major move.
Spot Gold (XAUUSD) plunges 2% as rising yields and a stronger dollar crush the safe-haven bid. Value zone at $4495.33 to $4401.84 is the next target.
Gold hits four-week low as firmer US Dollar, Oil-driven inflation weigh
Gold fell below 4695 which could lead to a further drop. As we see from the chart, the market is facing a resistance zone at 4765-95, where as long as prices hold below it, the drop pressure could continue as support at 4554 could push for a rebound.
Gold prices experienced a selloff in the Asian session as Oil prices continue to rise, stoking inflation concerns. Markets continue to be driven by the potential for a deal between the US and Iran.
Gold stalls at $4,633 with resistance at $4,670, while Silver breaks channel support near $74 as supply deficits tighten.
Gold (XAU/USD) is undergoing a significant selloff, driven by rising oil prices, inflation fears, and dampened sentiment over a US-Iran deal. Technical analysis shows accelerating bearish momentum across multiple timeframes, having broken key moving averages and support levels.
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