Written by: Fatma Younis
Gold prices recorded a notable increase at the start of weekly trading, mainly supported by falling oil prices which helped ease concerns related to global inflation and economic pressures.
The impact of oil prices on the precious metal
Markets witnessed positive movements for gold, as the gram of gold touched record high levels, while spot gold registered clear gains coinciding with silver price movements. Financial market analysts noted that the decline in oil prices provides relief to the economy by curbing inflationary pressures, which positively reflects on the appeal of precious metals as a safe haven for investors.
US Federal Reserve expectations and interest rate policies
Investors are cautiously awaiting the upcoming meetings of the US Federal Reserve, amid ongoing assessments of economic data and inflation indicators that play a pivotal role in determining the path of interest rates. Interest rate expectations directly affect gold prices, given that rising interest rates may limit the appeal of non-yielding assets, while expectations linked to central bank policies support demand for the yellow metal.
Technical resistance and support levels for gold
Technical readings of gold price movements showed that breaking through some key resistance levels could open the door to a new wave of growth targeting higher price ranges. Conversely, prices enjoy strong support levels protecting them from sharp declines should markets experience short-term profit-taking by traders.
Developments in energy markets and global markets
The recent decline in oil prices was driven by certain political and regulatory developments related to global energy supplies and decisions linked to sanctions and international trade. These developments in the energy market cast a direct shadow on the movement of various commodities and financial markets, keeping traders in a state of continuous anticipation for global inflation data and major central bank policies.
