Gold Near New Test Amid Stock Losses
Gold continued its decline for the second consecutive week, influenced by changing market expectations regarding US interest rates after the release of US labor market data, which showed strong job growth despite weak initial employment sector performance. This led to increased expectations of interest rate hikes, raising the costs of holding gold and putting downward pressure on its prices, with the ounce dropping to a one-month low of $4,282. However, gold maintained a key support level between $4,330 and $4,310, supported by geopolitical tensions and rising oil prices, which could boost demand for the metal as a safe haven. Additionally, central banks continued to increase their gold reserves, notably China's central bank, which added 20 tons in July. The future trend depends on gold's ability to sustain key support levels and on how US interest rates will react to geopolitical developments and oil price movements.
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