【Gold Price Trend】Gold Price Rebounds Toward 5100 USD, But Expected to Record Second Consecutive Week of Decline

Gold prices rebounded to around $5,100, but the dollar’s strength, ongoing Middle East conflicts pushing oil prices higher, and geopolitical tensions are expected to cause a weekly decline of over 1%, marking the second consecutive week of decline. The latest gold price is $5,109.7, up 0.6%. Silver prices increased by 1.3%, nearing $85.

For gold, rising energy prices and growing inflation concerns have significantly reduced market expectations for rate cuts by the Federal Reserve and other central banks. The latest U.S. unemployment report shows that initial jobless claims remain low, further decreasing the likelihood of falling borrowing costs. Rising borrowing costs are usually unfavorable for non-yielding precious metals. Traders currently see almost no chance of a rate cut next week, and only a 70% chance of a cut this year.

Middle East conflicts and persistently high oil prices are exerting greater pressure on gold. The International Energy Agency stated on Thursday that the war is causing the largest supply disruptions in global oil markets in history. Previously, member countries agreed to release a record 400 million barrels of oil from emergency reserves.

Over the past two weeks, investors have sold gold to cover margin calls in other portfolios, causing volatility in gold prices. Despite this, gold has still gained about 18% this year and remains largely above the $5,000 level.

Financial Hot Talk

Is the safe-haven role of gold failing? Are war fears fueling rate hike concerns?