Gold has fallen in recent days, but after a price increase of almost $200 between the end of June and mid-July, Commerzbank’s Commodity Analyst Barbara Lambrecht notes.
Gold price may lose an important support
“The price of Gold has also fallen in recent days despite rising risk aversion, which normally boosts Gold due to its role as a ‘safe haven’. However, this correction follows a price increase of almost $200 between the end of June and mid-July, during which the Gold price climbed to a new record high of $2,484 per troy ounce.”
“The most recent price decline is therefore more likely to be the correction of an exaggeration. In principle, the price is likely to defend its current level if Federal Reserve Chairman Powell hints at interest rate cuts in the near future following next week's Fed meeting. However, the new report from the World Gold Council (WGC) is also likely to show that central bank purchases have decreased, meaning that the Gold price has lost an important support.”
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