As the economy has a direct connection to trader activity, the Gold price has been inching back to $2000 following the release of US inflation data. Currently, the metal is trading around the $1980 range, while reaching a daily high of $1998. Subsequently, the journey to break through the $2000 threshold will arrive after a stringent battle between bulls and bears.
US inflation data is always a critical part of understanding the greater picture of the US economy. Moreover, it can typically present a key factor in predicting what the Federal Reserve will look to do in future meetings regarding interest rates. Yet, as the data had fallen in line with previous predictions, the price of gold had not seen the stark reaction that many had hoped for.
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Gold Price Seeking to Break Through $1990 in Quest for $2000 Mark
Although it can certainly be volatile at times, there are few investment options as popular as gold in the current market. Indeed, the overall fragile state of the American economy has allowed the asset to once again ascend. The asset presents a clear inflation defense and has seen its all-time high be reached in December of this year amid unclear economic development.
However, since that moment the asset has been on a downturn. Subsequently, the gold price had sought to regain the $2000 mark with the release of the US inflation data. Yet, it does not appear as though the fallen inflation results have had much of a positive effect on the value of gold. Currently, the asset is fighting to regain the $1990 level in its price.
Also Read: Gold Price Falls Below $2000 as Bears Take The Upper Hand
Kelvin Wong, the senior market analyst for Asia Pacific at OANDA, discussed key resistance levels with Reuters. “On the technical front, the support level to watch out will be $1955 per ounce,” Wong stated. Subseuqnlety, he identified the “near-term resistance around $2005.”
The Fed’s inflation target remains at 2%, and the expectation that interest rate cuts could happen as early as March has cooled off some. Still, the Federal Reserve’s decision will undoubtedly have a large impact on what direction the gold price goes to the end of 2023. Conversely, there remains a positive perception of how the metal will perform throughout the coming 2024.