Today, the price of gold is trading at $1,909 per ounce, having experienced a sharp decline to $1,893. This drop can be attributed to the strength of the US dollar and the challenges faced by the US housing market.
The global precious metals market is facing selling pressure as concerns about a recession ease. Recent reports indicate that the US economy is performing better than expected, which has alleviated fears.
Simultaneously, the value of the US dollar continues to rise. The Dollar Index (DXY), which measures the volatility of the greenback against six major currencies, currently stands at 103.3.
The expectation of higher interest rates has negatively impacted gold prices, especially as the dollar continues to strengthen and reaches a two-week high. Since gold is priced in US dollars, the strengthening of the dollar has deterred foreign investors from investing in gold.
From a technical standpoint, there is a possibility that gold may decline further to $1,850 per ounce, representing a 2.5% decrease from its current levels.
The global precious metals market is facing selling pressure as concerns about a recession ease. Recent reports indicate that the US economy is performing better than expected, which has alleviated fears.
Simultaneously, the value of the US dollar continues to rise. The Dollar Index (DXY), which measures the volatility of the greenback against six major currencies, currently stands at 103.3.
The expectation of higher interest rates has negatively impacted gold prices, especially as the dollar continues to strengthen and reaches a two-week high. Since gold is priced in US dollars, the strengthening of the dollar has deterred foreign investors from investing in gold.
From a technical standpoint, there is a possibility that gold may decline further to $1,850 per ounce, representing a 2.5% decrease from its current levels.
