As a falling wedge holds and US inflation threatens to spook bulls, gold’s price remains steady at $1,725 per ounce
In spite of the 10-month low, the gold price is still in a positive trend. Inflation data from the United States for June is expected to have an impact on the risk-on sentiment of traders. XAUUSD traders are also swayed by conflicting views on China and the economy.
The gold market fluctuated during trade on Thursday, as the important $1800 barrier continues to be threatened. The $1800 level is a support region that is reinforced by a substantial rising line.
Gold is revered worldwide for its monetary worth and illustrious history, which has been entwined with cultures for millennia. Coins containing gold debuted circa 650 B.C., and the first pure gold coins were minted during the reign of King Croesus of Lydia some 100 years later.
Gold is a popular commodity for investors who desire to hedge against inflation, market volatility, and political turmoil. In addition to purchasing gold bullion directly, investors may obtain exposure to gold through investing in gold-backed exchange-traded funds (ETFs) or by buying gold futures contracts.
Because of the unique position within the world’s economic and political systems, the gold market offers excellent liquidity and exceptional profit chances in practically all conditions, regardless of its bullish or bearish behavior. While many individuals choose to hold the metal outright, futures, equities, and options markets provide tremendous leverage with manageable risk.
Inflation fears among investors pushed gold prices up. The Fed’s comments and the first-quarter GDP will indicate economic conditions. Treasury rates increase prior to a Fed speech.