Latest Articles

HomeGoldGold prices edge higher on U.S. recession fears

Gold prices edge higher on U.S. recession fears

On Thursday, the price of gold was adjusted slightly in the intraday market. The price of gold was 1,740 US dollars per ounce .

Gold fell 1.8% on Wednesday to a more than nine-month low as the dollar jumped to its highest level since March 2020, seen by investors as a safe-haven asset amid rising recession fears and the Federal Reserve continuing to raise interest rates. Investors fear a looming economic downturn as central banks around the world tighten monetary policy to combat inflation. The possibility that the Federal Reserve will raise interest rates faster than peers such as the European Central Bank also further boosted the dollar, and gold prices headed for the biggest weekly decline since June 2021.

Minutes of the fed’s meeting showed that members gave a case for a 75-basis-point rate hike in June and a possible 50- or 75-basis-point hike at a meeting later this month. Investors are also awaiting Friday’s U.S. nonfarm payrolls and unemployment data. The latest forecast from Bloomberg Economics puts the probability of a U.S. recession in the next year at 38 percent.

The short-term gold price resistance level is about 1750, and the watershed is at 1760. Under the suppression of yesterday’s day line, it may be difficult to rebound too much. The bottom support is about 1730, and the strong support is about 1715-1720.

Therefore, in terms of operation, gold is not in a hurry to trade today, and it will be calculated later in the European market. If the European plate does not break below 1750 to suppress, you can consider continuing to enter the short position, and stop falling near 1730 and do more.