Gold drops $40 to the worst levels of the year

Jul 6, 2022
Gold drops $40 to the worst levels of the year

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Gold daily chart July 5

Gold is down $43 to $1767 because the US greenback surges and recession fears cloud the demand outlook. Earlier as we speak Russia forecast a bigger authorities surplus however stated the cash will not be put into FX or gold reserves.

I believe this transfer has little to do with newsflow and extra to do with technicals and the darkening cloud over danger belongings. US equities are down 2% and all the things is being bought in the meanwhile. For gold, the autumn in Treasury yields needs to be good however I do not suppose we’ll see it translate into gold positive aspects till central banks pivot to one thing less-hawkish.

The December low of $1753 ought to supply some gentle assist from right here however there is not a lot on the chart to lean in opposition to till the Sept low of $1720 and the August 2021 low of $1684.

Seasonally, the July-August interval is mostly a great one for gold nevertheless it hasn’t began out that method this 12 months.

Sooner or later the USD-fever will crack however proper now all the main target is on falling European progress and that is saved the greenback bid.

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