Dollar strength weighs on gold in the short term
A sturdy US dollar added to sales pressure, where the DXY index rises 0.2% to a highest point in two weeks. The stronger Greenback makes Dollar-Voordrenkt gold less attractive for foreign buyers. This is because the expectations of the FED policy continue to support the wider golden prospects. Markets are pricing in 71 basic points of speed reductions this year, with a 25-bash point reduction that is fully priced for July, according to LSEG data.
Safe port flows still support the long -term power
Geopolitical risks remain an important engine. Israël escalated his military campaign in Gaza and ended a two-month ceasefire, while the trade stresses of the US china linger. These events continue to break defensive allocations in gold, which strengthens its role as a portfolio cover during periods of uncertainty. The metal has already achieved 16 record highs this year.
Gold versus shares: divergence suggests consolidation ahead
Gold has surpassed the US shares by 24% in the last three months – the widest gap since March 2022. Historically, such a divergence preceded stock rebounds and mild gold consolidations. Sentimentrader -Data shows that after comparable spreads gold often lags behind in the coming weeks, while capital rotates back in risk assets.
Outlook from the Goudmarkt: withdrawal in the short term, long -term bullish
The gold market seems ready for a short -term correction, with $ 2,968.92 and $ 2,867.68 as important downward levels to watch. However, the wider upward trend remains intact, supported by Dovish Fed expectations and persistent geopolitical tension. As long as gold has the progressive average of 50 days, the long -term prediction remains gold prices Bullish.
More information in our economic calendar.