Gold Market
Deeper looks at the forces setting the gold price.
Spot gold turned higher on Thursday, trading near $4,610 after touching a weekly low of $4,566. The dollar softened and Wall Street rallied on strong Nvidia earnings, while Fed officials sounded hawkish at Jackson Hole.
An analyst suggests gold could reach the $4800-$5000 resistance zone, but a short-term pullback of 5-7% is possible. Silver and the GDX ETF may fall 10-20%.
The US ended dollar-gold convertibility in 1971. Decades later, central banks buy gold at the fastest pace since Bretton Woods. We examine the paradox.
Gold mining supply is highly inelastic in the short term. Higher prices trigger new projects, but exploration, permitting, and construction take years, while existing mines face ore-grade declines.
The gold standard linked currencies to gold for centuries, but its rigidity led to its abandonment in favour of fiat money.
Gold price stalled near $4,700 after a strong rally from $4,300. Sellers have appeared, with immediate support at $4,465 and a possible test of $4,510.
Gold holds near a four-month high after a 5% weekly gain, with traders focused on US PCE inflation data and Fed Chair Warsh's speech at Jackson Hole for policy clues.
Gold pulled back sharply from a 15-week high of $4,697 on Tuesday, weighed by a stronger US dollar and rising oil prices amid geopolitical tensions. However, technical indicators and robust physical demand suggest the bullish trend may persist.
Gold briefly rose above $4,680, its highest since mid-May, as the US dollar weakened on political turmoil. Technical indicators suggest the bullish trend remains intact.