Gold Market
Deeper looks at the forces setting the gold price.
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.
Gold reached three-month highs above $4,650 on Monday, extending last week's gains as the US dollar weakened on tariff tensions, fading rate hike expectations, and safe-haven demand.
An examination of gold's historical performance during recessions and financial crises, highlighting its role as a store of value and safe-haven asset.
Gold rose 5.2% in a week to $4,662, driven by a US Treasury buyback plan and a falling dollar. A new parabolic long trend has begun, but analysts warn the speed may be unsustainable.