Influencing Factors of the Current Decline in Gold Prices
The decline of gold prices below 3,350 USD has been significantly influenced by the recent US CPI data (Consumer Price Index) and speculation about trade agreements. These factors directly impact the market environment and influence investors’ decisions.
Technical Challenges and Market Trends
Specifically, it has become evident that the gold price has struggled in recent days to sustainably overcome the important resistance level at 3,350 USD. Technically, the price is currently in a downward trend, with short-term support levels in the range of 3,310 to 3,285 USD. The US CPI data plays a role as it provides insights into inflation and thus impacts interest rate policies and currency movements—both of which are crucial factors for the gold price.
Speculation on Trade Agreements
Additionally, speculation about trade agreements has an effect: Should negotiations fail or new tariffs be introduced, this could increase demand for safe assets like gold; conversely, a calming of trade tensions often leads to profit-taking in gold. Currently, a stronger US dollar is also weighing on the gold price, as a strong dollar makes holding dollar-denominated commodities like gold less attractive for investors outside the USA.
Recommendations for Investors
Overall, this means for investors:
- The decline below 3,350 USD signals short-term selling pressure.
- The further development strongly depends on new inflation data (CPI), monetary policy decisions, and the course of trade talks.
- Technical supports around 3,300 to 3,285 USD are crucial for possible recoveries.
- A sustained rise of the US dollar or positive news regarding trade agreements could exert further pressure on the gold price.
Therefore, investors should closely monitor both macroeconomic data and geopolitical developments, as these continue to have a strong influence on the market environment and thus on the gold price.