Gold gains for second week in a row
Gold markets experienced a significant decline for the second consecutive week, with the price of an ounce dropping to a two-week low of $4,110. This represents a 3.4% decrease compared to the previous week. The decline is attributed to the rise of the US dollar, which reached its highest level in a year and a half, as well as the increase in 10-year government bond yields, which rose by 2% over the week and continued their upward trend for the eighth consecutive week. These factors reduce gold's attractiveness as an investment asset. The level of $4,100 is considered a pivotal threshold; a break below this level and a close under it could signal a continued downward trend. However, gold has so far remained above this level in a sideways pattern, which could support a technical correction if the support at this level persists. Gold's movement is heavily dependent on changes in the US interest rate market, with investors closely watching inflation and employment data that influence expectations for rate hikes. These factors will determine its ability to regain an upward trajectory in the coming years.
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