Gold price today: the precious metal is flat

The current world gold price on Kitco is 1,934.7 USD/ounce, down 10.9 USD/ounce compared to the previous session. Within just two trading sessions, the price has dropped by more than 23 USD/ounce.

The gold market is facing challenges due to inflation, a strong labor market and strong economic activity, supporting the Federal Reserve's aggressive monetary policies.

Daniel Pavillonis, senior market strategist at RJO Futures, explained that the strength of the US dollar is keeping gold prices below $2,000 an ounce.

The US dollar gained strength as the International Monetary Fund (IMF) recently raised its forecast for global economic growth in 2023. The IMF now predicts global gross domestic product (GDP) to increase by 3 %, up from the previous forecast of 2.8%. .

Comment:

However, bad economic data did not significantly affect gold as safe-haven demand continued to make the US dollar attractive. Gold price for December delivery was still trading at $1,971 per ounce, down slightly by 0.2% on the day. Analysts have pointed out that the $1,970 price level is an important support and if broken, a drop to the $1,900 level is probable.

Comment:

Andrew Hunter, vice president of US economics at Capital Economics, said that while economic growth was steady in the first half of 2023, the new data showed plenty of uncertainty going forward.

Comment:

Schneider noted that investors should keep an eye on the support at $1,970 per ounce. If the yellow metal slides out of this level, the price can touch 1,930 USD/ounce. If the $1,900 level is broken, gold is likely to fall to $1,850 an ounce.