International Gold Market News: XAU
February 16, 2023
The international gold market witnessed significant volatility in the past week, with analysts and investors closely monitoring geopolitical tensions and economic indicators.
Price Action
Spot gold prices fluctuated between $1,820 and $1,870 per troy ounce over the past week. After hitting a low of $1,820.22 on February 10, the precious metal recovered ground and reached a high of $1,870.00 on February 13.
Influencing Factors
* Geopolitical Tensions: The ongoing conflict between Russia and Ukraine continues to weigh on the gold market. Investors are seeking safe-haven assets like gold amid heightened geopolitical risks.
* US Economic Data: Strong US jobs and inflation data released last week raised concerns about continued interest rate hikes by the Federal Reserve. Higher interest rates make holding gold less attractive as it does not offer a yield.
* Central Bank Purchases: Central banks around the world, including those in China and Russia, have been net buyers of gold in recent months. This accumulation has provided support to gold prices.
* Technical Analysis: According to chart analysts, gold has formed a bullish pennant pattern, suggesting a breakout to higher levels is possible.
Outlook
Analysts remain cautiously optimistic about the outlook for gold. While geopolitical tensions and economic uncertainty are likely to continue supporting prices, higher interest rates and a potential slowdown in global economic growth could act as headwinds.
Key Levels to Watch
* Support: $1,820, $1,790
* Resistance: $1,870, $1,900
Market Sentiment
Market sentiment for gold is mixed. Some analysts believe that the precious metal is undervalued and poised for further gains. Others caution that the potential for further interest rate hikes and slowing economic growth could limit upside potential in the near term.
Disclaimer: The information provided in this article is for general purposes only and should not be considered investment advice. It is recommended to consult with a financial advisor before making any investment decisions.
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