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.)

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