WEEK AHEAD: Gold price at $1,700 is in a danger zone as markets enter Fed's blackout period before the July meeting | kitconews gold silver finance preciousmetals markets mining investing |
Gold has had a tough week as markets repriced rate hike expectations, and the strong U.S. dollar stole a lot of the safe-haven appeal away from gold. Next week, analysts remain cautious as the $1,700 an ounce level is a dangerous area for gold.
The main trigger behind this week's $40 selloff was the surprising U.S. inflation report, which showed annual price pressures rising 9.1% in June and led to the repricing of rate hike expectations for July. In response, the U.S. dollar index was trading at 20-year highs, yields rose, and gold tumbled and briefly traded below the $1,700 an ounce level.
Bearish sentiment points to gold price falling below $1,700 next week https://t.co/JP6Re5EIU7 #kitconews #gold #silver #mining #finance #metals #investing #economics "Gold fell further than I had anticipated. For weeks a lot of us have been saying $1,700 was a possible level of support, which is where we are at it right now," said Gainesville Coins precious metals expert Everett Millman."The risk to the downside remains fairly high. It will take a bit longer for markets to fully digest the new Fed expectations and the higher dollar."
"As market expectation and narrative is repriced for stronger dollar this summer, this will affect the technical outlook. The negative feedback loop is when prices fall, more technical traders will be updating the ranges and getting less bullish on gold," he told Kitco News.
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