The price of gold began to decline today against the background of gradually fulfilling hopes for a faster recovery in global economies after the lifting of quarantine measures related to the COVID-19 pandemic. At the same time, the growing tension between the United States and China, as well as riots in America, are pushing the precious metals market in the opposite direction, which does not allow the fall to worsen. Thus, gold began to decline, which so far has its limits.
The price of gold fell by 0.15% this morning and reached the level of $ 1,737.46 per troy ounce. Support for gold is at the level of $ 1,720 per troy ounce, and the resistance was at around 1,761 dollars per troy ounce.
Today it has become clear that multidirectional forces press on gold, which does not allow it to choose a specific vector for movement. There are factors that support and make us move up, and there are pressures that pull down. On the one hand, this allows you to stay within the same range, almost eliminating a sharp and rapid drop. On the other hand, growth is also severely limited. Until the forces outweigh in one direction or another, we will observe movement in an extremely narrow corridor.
Of the news that market participants pay special attention to, it is worth noting the continuation of the conflict between Beijing and Washington, which could lead to the abolition of Hong Kong privileges and its status as a global financial center. The situation is aggravated by retaliatory measures by the Chinese authorities, which have already canceled the purchase of agricultural products produced in the United States of America. This may result in complete trade isolation of the largest economies in the world, which in turn will negatively affect the general economic climate of the world. The rupture of US-Chinese trade relations is a support factor for gold, which means that it will grow in value.
However, the positive attitude is offset by negative news, which should include the protest movements in the United States of America that erupted due to another act of racial discrimination that resulted in death.
The situation on the stock exchanges of the world is now more than favorable, and this is a counterargument for the purchase of precious metals. Investors still have the courage, and they do not need gold as a safe-haven asset.
According to experts, the short-term movement of gold will be in the range of 1,700 to 1,750 dollars per troy ounce. Trade within these limits will continue until there is serious pressure from the outside world.
The cost of palladium decreased by 0.12% and stopped at around 1,958.99 dollars per troy ounce. Silver slowed down by 0.18% and reached the level of 18.24 dollars per ounce. The price of platinum fell 0.81%, pushing the metal one line at $ 840.75 an ounce.
Copper futures for July delivery fell by 0.24% which makes it $ 2.642 per pound.