Gold price slips below key mark to end week
- First weekly loss of several possible
- Several factors at play in a difficult week
- Attention turns to US PMIs after ECB support
The price of gold slipped early in today’s session below the key benchmark of $ 1,800 in a week that was dramatic not so much for commodity news and the market in this regard, but certainly on Wall Street, which had an impact on commodity prices including gold and other precious metals which are also down on the week. Several factors, from cases of COVID to the strength of the USD forex market, to national issues and Treasury yields, have all played a continuing role in the moves of the week as the market begins to look towards it. ‘to come up.
Gold trending towards rare weekly loss
Although trading over weekly periods has fluctuated for gold at times, the precious metal has not seen an overall weekly loss in 5 weeks. This is a statistic that looks more and more likely to change as prices started to drop during the European session. Gold is trading just below $ 1,800, which could be a key hurdle although it retreated after a similar drop earlier in the week.
Even if it were to end the week negatively, traders still show some resistance in trading gold and other precious metals. None are too low and all are positive over a longer period. There is a hint of caution or a feeling that traders should always have a foot on both sides of the line until the overall economic picture becomes clearer.
The strength of the dollar and more commodities on the move
It is difficult to identify a single key factor driving gold and other commodities forward. Instead, there are a number of issues that need to be addressed. The first of these is the stronger US dollar which was fueled by the fiery start of the week in the equity market. The Dow Jones fell over 700 points earlier in the week, giving the dollar a boost.
This type of stronger dollar does not bode well for gold or other precious metals in general, although the stock market has rebounded quickly, the price of gold from its lowest earlier in the year. week also rebounded. Other hurdles to overcome include U.S. Treasury yields which have started to rise again, and the general theme of concern over COVID cases.
US data comes into play
The next drivers for gold and other commodities may well be the expected US PMIs for industry and services. These will be watched closely by traders, especially from an inflation point of view.
Other factors include the appearance of the corresponding EU data as well as how the ECB’s policy changes will be implemented and how the bloc’s commitment to keeping interest rates low will continue. . Until then, commodity prices remain dependent on the current sentiment which seems to end the week stronger.