{"id":110637,"date":"2025-05-20T16:29:00","date_gmt":"2025-05-20T13:29:00","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=110637"},"modified":"2025-05-21T13:31:26","modified_gmt":"2025-05-21T10:31:26","slug":"gold-outlook-golds-price-appears-to-be-stabilizing","status":"publish","type":"post","link":"https:\/\/www.ironfxcn.com\/vi\/gold-outlook-golds-price-appears-to-be-stabilizing\/","title":{"rendered":"Gold Outlook: Gold\u2019s price appears to be stabilizing"},"content":{"rendered":"

Gold\u2019s price has moved higher since the start of trading on Monday. Today we are to have a look at it along with other fundamental issues affecting gold\u2019s price and for a rounder view conclude the report with a technical analysis of gold\u2019s daily chart.\u00a0<\/p>\n\n\n\n

US Sovereign credit rating gets downgraded<\/strong><\/h2>\n\n\n\n

Moody\u2019s on Friday downgraded the U.S. sovereign credit rating <\/strong>,citing concerns over the nation\u2019s growing $36 trillion debt pile. Moody\u2019s stated on Friday that \u201cSuccessive US administrations and Congress have failed to agree on measures to reverse the trend of large annual fiscal deficits and growing interest costs\u201d. The announcement by Moody\u2019s could have aided gold\u2019s price initially, yet the announcement appears to have sent yields on Treasury bonds higher. <\/p>\n\n\n\n

Thus, given that US bonds are interest-bearing whereas gold is not, investors may have re-allocated funds from gold to the bond market, which in turn may have weighed on gold\u2019s price. \u00a0However, should fears over the mounting US debt pile continue to increase, it may aid gold\u2019s price in the future.<\/p>\n\n\n\n

Ukraine-Russia peace deal in the works?<\/strong><\/h2>\n\n\n\n

Overall, we note an easing of tensions on a geopolitical level tends to have a possible bearish effect on gold\u2019s price. It\u2019s characteristic that US President Trump announced yesterday that Russia and Ukraine will \u201cimmediately\u201d begin negotiations on preparations for peace talks. <\/p>\n\n\n\n

The announcement by Trump showcases that Russia and Ukraine appear to be willing to begin proceedings that could eventually bring an end to the war. In turn, the recent developments may ease geopolitical tensions in the continent and thus could weigh on gold\u2019s price, which is considered to be a safe haven asset. <\/p>\n\n\n\n

However, should the talks fail to proceed or break down with no meaningful progress being made, it could potentially aid the gold\u2019s price. Nonetheless, in our view, the push by the US to bring both sides to the table may bear fruit in the future and thus could weigh on gold\u2019s price.<\/p>\n\n\n\n

Israel to take over the Gaza strip?<\/strong><\/h2>\n\n\n\n

According to a report by Bloomberg<\/strong>, Israeli Prime Minister Netanyahu<\/strong> stated on Monday that Israel will take over the entire Gaza strip<\/strong>, following an announcement by the military that it would carry out an \u201cunprecedented attack\u201d on Hamas. <\/p>\n\n\n\n

The announcement by the Israeli Prime Minister that Israel will take over the entire Gaza strip which could result in a significant displacement of the local population, may significantly escalate regional tensions between Israel and its neighbours. In turn, such a scenario could potentially aid the precious metal\u2019s price.<\/p>\n\n\n\n

Gold Technical Analysis<\/strong><\/h2>\n\n\n\n

XAUUSD 4H Chart<\/strong><\/strong><\/h3>\n\n\n\n
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