Gold gives up earlier gains...

9 Sep 2022

Gold has repeatedly hit resistance around the $1725 area. The metal has been struggling all year because of rising interest rate expectations from both side of the Atlantic and a strong US dollar. But with the lack of any further news on inflation and interest rates this week, the metal has been able to climb higher a tad. It briefly poked its head above that $1725 level earlier today, before pulling back. Next week's CPI report could provide the final nail in the coffin for the metal if it comes in stronger as it would further fuel speculation about a 75 basis point Fed rate hike later this month. In any case, it continues to look like gold is heading below this year’s earlier low and test the 2021 low at $1676, before deciding on its next move. But for confirmation, it will now need to break $1704 support.

By Fawad Razaqzada on behalf of City Index