Gold holds its breath and waits for the right moment
According to Kitco, the world gold price today recorded spot at $1,934,225 per ounce.
Gold markets struggle to maintain key support levels as US service activity slows. In fact, the Services Purchasing Managers' Index fell in July to 52.7%, lower than previous estimates. Numbers above 50% represent economic growth and vice versa.
As a result, this number is decreasing – indicating that service sector growth is slowing down a bit. Factors such as business activity growth, new orders and employment all fell.
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.
Gold markets struggle to maintain key support levels as US service activity slows. In fact, the Services Purchasing Managers' Index fell in July to 52.7%, lower than previous estimates. Numbers above 50% represent economic growth and vice versa.
As a result, this number is decreasing – indicating that service sector growth is slowing down a bit. Factors such as business activity growth, new orders and employment all fell.
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.
