GOLD - Break the trend to create a Downtrend
After a recent recovery, the price of gold experienced a sudden drop. This was caused by investors selling off their gold due to the release of the minutes from the US Federal Reserve's June monetary policy meeting.
The minutes revealed that Fed officials are still leaning towards a hawkish monetary policy stance. They indicated that interest rate hikes would continue, even though there was a temporary pause last month. As a result, the US dollar strengthened, making gold less appealing to investors.
The strength of the US dollar, measured by an index that compares it to other major currencies, reached 103.3 points this morning. It continued to increase by 0.29% before the gold market took a hit.
If the price of gold falls below the $1,900 mark per ounce, it could potentially drop to $1,860 per ounce.
The minutes revealed that Fed officials are still leaning towards a hawkish monetary policy stance. They indicated that interest rate hikes would continue, even though there was a temporary pause last month. As a result, the US dollar strengthened, making gold less appealing to investors.
The strength of the US dollar, measured by an index that compares it to other major currencies, reached 103.3 points this morning. It continued to increase by 0.29% before the gold market took a hit.
If the price of gold falls below the $1,900 mark per ounce, it could potentially drop to $1,860 per ounce.
Comment:
When interest rates increase, the dollar will increase, making all costs in gold business expensive.
