{"id":82405,"date":"2024-05-07T15:39:36","date_gmt":"2024-05-07T12:39:36","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=82405"},"modified":"2024-07-23T10:37:39","modified_gmt":"2024-07-23T07:37:39","slug":"gold-continues-to-stabilize","status":"publish","type":"post","link":"https:\/\/www.ironfxcn.com\/zh\/gold-continues-to-stabilize\/","title":{"rendered":"Gold continues to stabilize"},"content":{"rendered":"

Gold\u2019s price appears to have stabilized in the past week<\/a>, with it potentially receiving some safe-haven inflows since the beginning of the week, following the most recent developments in the Middle East.<\/p>\n\n\n\n

Today we are to discuss the fundamental challenges laid ahead for the precious metal as well as financial releases that may have affected the direction of its price action. Finally, we will be concluding this report with a technical analysis of gold\u2019s daily chart. <\/p>\n\n\n\n

The correlation between USD and gold.<\/strong><\/h2>\n\n\n\n

The classic perception of the market for a negative correlation<\/strong> between the USD and gold\u2019s price seems to have not been in place over the past week. In particular gold\u2019s price lost some ground while in the same period, the USD<\/strong> also edged lower<\/strong>. It should be noted that during the same timeframe, US yields<\/strong> seem to have moved lower<\/strong>.<\/p>\n\n\n\n

Hence, we still see the case for the antagonistic relationship between gold\u2019s price and US bonds<\/strong> as safe haven instruments to have been inactive in the past week. Nevertheless, should US yields start rising substantially we may see trader\u2019s attention turning towards US bonds<\/strong>, as their interest-bearing<\/strong> status<\/strong>, may be more desirable<\/strong> to investors<\/strong>. In comparison, gold<\/strong> which is a non-interest-bearing asset<\/strong>, may see outflows which in turn could weigh on its price.<\/p>\n\n\n\n

Overall, we expect the lack of high-impact financial releases and monetary policy events to have a subdued impact on the aforementioned factors.<\/p>\n\n\n\n

Middle East Tensions flare up again.<\/strong><\/h2>\n\n\n\n

During the early morning hours of Tuesday the 7\u00a0  <\/sup> of May, tensions between Israel and Hamas seem to have escalated once again. The most recent development comes, as Hamas<\/strong> has agreed<\/strong> to a Qatari-Egyptian proposed ceasefire agreement<\/strong>, yet the proposal appears to have failed to meet Israel\u2019s demands.<\/p>\n\n\n\n

Thus, following Israel\u2019s rejection of the aforementioned deal, Israeli forces seized<\/strong> control<\/strong> of the Gazan side of the Rafah border crossing<\/strong> with Egypt, effectively beginning their offensive into the southern part of the Gaza Strip<\/strong>. Hence, with Israel\u2019s renewed offensive into what many international observes may have considered as a \u201cred line<\/strong>\u201d, it could lead to elevated<\/strong> tensions<\/strong> in the region<\/strong>, which may aid<\/strong> gold\u2019s price<\/strong> given its safe haven status<\/strong>.<\/p>\n\n\n\n

Yet, the silver lining may be the recent reports that an Israeli delegation<\/strong> will be meeting with Egyptian and Qatari officials within the next few days, to discuss a new ceasefire proposal.<\/p>\n\n\n\n

Nonetheless, should tensions flare up again between Israel and its neighbours, it could lead to safe-haven inflows into gold, thus aiding its price. On the flip side, in the event of a ceasefire<\/strong> agreement gold<\/strong> may face safe haven outflows<\/strong> which could weigh<\/strong> the precious metal\u2019s price<\/strong>, as tensions<\/strong> in the region may ease<\/strong>.<\/p>\n\n\n\n

April\u2019s US employment report.<\/strong><\/h2>\n\n\n\n

The US Employment report<\/strong> for April<\/strong> was released last Friday. The NFP<\/strong> figure came in lower than expected at 175k<\/strong>, with the unemployment<\/strong> rate<\/strong> also rising to 3.9%<\/strong>, which was greater than what was anticipated by economists.<\/p>\n\n\n\n

Therefore, the US Employment<\/strong> report appears to imply an easing<\/strong> of the US employment market<\/strong>, which in turn may ease<\/strong> the hawkishness<\/strong> of Fed<\/strong> policymakers<\/strong> and thus could support gold\u2019s price. In conclusion, the implications of a loosening labour market appear to have provided minimal support<\/strong> for gold\u2019s price upon their release, with the gains having since been reclaimed.<\/p>\n\n\n\n

Nonetheless, should Fed policymakers<\/strong> ease<\/strong> on their recent hawkish<\/strong> rhetoric<\/strong>, it could weigh<\/strong> on the dollar<\/strong>, whilst providing support<\/strong> for gold\u2019s<\/strong> price<\/strong> given their inverse relationship <\/strong>with one another.<\/p>\n\n\n\n

\u6280\u672f\u5206\u6790<\/strong><\/h2>\n\n\n\n

XAUUSD Daily Chart<\/strong><\/h3>\n\n\n\n
\"Technical<\/figure>\n\n\n\n