Gold moved on a negative correction Thursday morning after a prolonged and precipitous rally over the past few weeks. It nearly sank to 1% mainly due to the transition of the US dollar from a weak position to a stronger one.
The dollar is gradually starting to regain its losses, and the price of gold futures for August delivery on the New York trading floor falls 0.88%, which will stir it to the level of $ 1,953.06 per troy ounce. Support for the precious metal goes to the area of $ 1,880.5 per troy ounce, and resistance, respectively, is at around $ 1,974.9 per troy ounce.
According to experts, this fall is far from the previous one in the current period. All the problems of gold that it will inevitably have to face are still far ahead. In the near future, the metal may experience more serious resistance on the way to its coveted target of $ 2,000 per troy ounce. The voltage rises as quickly as the resistance.
At the same time, it is noted that the frenzied popularity of gold will also end soon, as investors have already approached saturation. This means that a technical correction is quite possible by the end of this and the beginning of next week.
In general, over the ongoing year, the price of gold increased by 28%. The rise was ensured by the steady investment demand for precious metals by American and European market participants. This is what neutralized the rather insignificant physical consumption of precious metals in Asia.
Nevertheless, the political, economic, and epidemiological situation in the world continues to support the metal. The risk of geopolitical tensions, as well as weak economic growth, are just some of the factors that will contribute to the growth of gold quotes and will definitely not go anywhere in the near future.
However, the price level of $ 2,000 per troy ounce is already quite seriously frightening investors, who psychologically did not have time to prepare for such a turn of events, since the situation was developing too quickly. In this regard, a correction is simply necessary to restore balance and continue to grow.
The price of silver is also correcting downward today and already fell 4.62% and was at around $ 23.28 per troy ounce.
Palladium also showed negative dynamics, which was reflected in its fall of 4.43%. Its current level is $ 2,061.66 an ounce.
Platinum supported the 1.91% contraction, pushing it to $ 906.58 per ounce.
Copper futures for September delivery are down by 0.34% and remain at $ 2.9238 per pound so far.