Gold: Technical support tested as liquidation continues – MUFG

FXStreet Insights Team FXStreet

MUFG’s Senior Currency Analyst Lee Hardman reports that Gold and other precious metals are under pressure despite heightened geopolitical risks. Gold has lost nearly a quarter of its value since the Middle East conflict began and is approaching its 200-day moving average support near USD 4,090/ounce. Position liquidation and hawkish central bank repricing are cited as key drivers of the ongoing correction.

Precious metals slide toward key support

"At the same time, the price of precious metals including gold and silver have continued to correct sharply lower."

"The price of gold has lost almost a quarter of its value since the Middle East conflict began, and has fallen back towards support from its 200-day moving average at around USD 4,090/ounce."

"Position liquidation and the hawkish repricing of central bank rate expectations have weighed on precious metal prices."

"The price of gold has failed to benefit so far from heightened geopolitical risks and stagflation fears."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD: Downward-sloping trendline near 1.3470 remains key barrier

The British pound faces selling pressure against its major currency peers, trading 0.1% lower at around 1.3420 against the US Dollar during the European trading session on Tuesday.

Euro defends 1.1500 level ahead of US data

EUR/USD struggles to make a decisive move in either direction and trades in a tight channel above 1.1500 on Tuesday. Investors cling to a cautious stance amid the uncertainty surrounding the situation in the Middle East and help the USD stay resilient against its rivals, limiting the pair's upside ahead of the next batch of US data.

Ripple Price Forecast: XRP extends technical weakness despite whales increasing exposure

Ripple (XRP) declines for a second day in a row, trading around $1.07 at the time of writing on Tuesday. The remittance token has continued to sustain a bearish outlook, aligning with the broader cryptocurrency market.

Volatility waits for fresh catalyst ahead of US-Iran 'talks'

EU mid-market update: SpaceX and AMD to report after the close; Volatility waits for fresh catalyst ahead of US-Iran 'talks'. - Middle East and energy drives sentiment still.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.