Golden Finance reports that the international precious metals market has experienced sharp fluctuations, with the spot gold price just falling below the crucial $3,300.00 per ounce mark. As of the latest data, the spot gold price is quoted at $3,299.70 per ounce, with an intraday decline of 1.27%. The main contract of COMEX gold futures was recently quoted at $3,299.00 per ounce, with an intraday decline as high as 1.98%.
The key support level was lost and the gold price took a sharp downturn
The price of $3,300 per ounce has long been regarded by the market as an important support level for spot gold, and many investors and analysts consider it a key node for judging the trend of gold prices. The spot gold price has dropped below this threshold this time, drawing high attention from the market. From a technical perspective, the rapid decline in prices has disrupted the relatively stable range-bound pattern in recent times, which may trigger more stop-loss orders and further intensify the downward pressure on prices. Many investors holding long positions choose to sell their gold positions to control risks after the price breaks below the support level, thereby pushing the price down further.
Multiple factors have exerted pressure, intensifying the volatility of the gold market
The recent sharp drop in the price of gold is the result of the combined effect of multiple factors. On the one hand, changes in global economic data have affected the market’s demand for safe-haven assets. Recently, some economic indicators have shown a good economic recovery trend. Market risk appetite has improved. Investors have withdrawn funds from safe-haven gold assets and instead invested in risky assets. On the other hand, the strengthening of the US dollar index has also put pressure on the price of gold. Gold is priced in US dollars. The appreciation of the US dollar makes gold more expensive for holders of other currencies, thereby suppressing demand. In addition, the market’s expectations of the Federal Reserve’s monetary policy are also influencing the trend of gold. If the market expects the Federal Reserve to accelerate the pace of interest rate hikes or reduce its balance sheet, this will enhance the appeal of the US dollar, while increasing the opportunity cost of holding gold, prompting investors to sell gold and causing the price to fall. At present, the market is closely monitoring subsequent economic data and policy developments to determine whether the gold price will continue to decline or find support to stabilize and rebound at a new level.
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