FX.co ★ Gold continues to see strong selling pressure

The gold market continues to see strong selling pressure, with prices trading around $1,900. It seems that the improving US consumer sentiment has little effect on the precious metal.

According to latest reports, the US consumer confidence, compared with the February value of 110.5, rose to 107.2, slightly higher than the expected 106.9. But it had little effect on gold, perhaps because the change in investor sentiment puts pressure on the precious metal.

Negotiations in Ukraine also provoked a 3,700-pip drop in the metal, making it hit a new low.

Despite that, in the weekly chart, gold still has a very tempting target, which is 2075.

The US consumer confidence index is supported by strong employment growth, which holds up accordingly despite geopolitical uncertainty and expectations that inflation will continue to grow. However, such a result is not eternal, and most likely, it will decrease as consumers reduce their spending. Rising interest rates could also affect consumption