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Showing posts with label Gold. Show all posts
Showing posts with label Gold. Show all posts

Friday, 25 February 2022

GOLD PRICE FORECAST: XAU/USD EYES $2,000 IN COMING SESSIONS

25 February 2022, 08:58

Gold has regained its bullish momentum early Friday and started to edge higher toward $1,920. Amid the Russia-Ukraine war, the yellow metal could reach the $2,00 level, FXStreet’s Dhwani Mehta reports.

Gold bulls are back in the game

“Gold is likely to remain underpinned going forward, as tensions remain elevated concerning the West, Russia and Ukraine.”

“Gold’s four-hour chart is pointing to further upside risks, as the price recaptures the 21-Simple Moving Average (SMA) at $1,910. The road to recovery will likely extend towards the $1,950 level should the latter hold. The next stop for bulls is seen at the multi-month tops of $1,975, above which a ride towards the $2,000 mark will be inevitable.”

“If the bears fight back control, then a drop back towards the critical 50-SMA support at $1,892 will be inevitable. It’s worth noting that gold price has managed to reclaim ground from the latter on a couple of occasions earlier on.”

Friday, 18 February 2022

BREAKING: GOLD HITS $1900 AS RUSSIA/UKRAINE/NATO TENSIONS SIMMER

17 February 2022, 19:46

Spot gold (XAU/USD) prices hit $1900 per troy ounce for the first time since June 2021 on Thursday, taking its on-the-day gains to more than 1.5% as geopolitical tensions between Russia, Ukraine and NATO simmer, stimulating demand for safe-haven assets. Gold now trades more than 2.0% higher on the week, taking its two-week run of gains to nearly 5.0%.

Fears of an imminent Russian military incursion into Ukraine have escalated in recent days, with reports of shelling in the war-torn Donbas region of Eastern Ukraine on Thursday sparking fears that Russia is looking to create a pretext for military action, as the country continues to amass troops near the Ukrainian border. 

A positive technical backdrop has coincided with the increased safe-haven demand for gold; XAU/USD broke above a key long-term pennant structure at the end of last week. This week it fell back to the $1850 area to test the old long-term pennant and, promisingly for the bulls, found strong support. The bulls will now likely target a move above $1900 and towards the mid-2021 highs in the $1915 area.


Monday, 14 February 2022

GOLD PRICE FORECAST: XAU/USD EYES A RALLY TOWARDS $1,878 AMID UKRAINE TENSIONS – CONFLUENCE DETECTOR

14 February 2022, 11:06

  • Gold price gathers strength for the next upswing towards $1,878.
  • US inflation concerns and the Russia-Ukraine turmoil to offer support.
  • Gold corrects before resuming uptrend, focus on Russia-Ukraine crisis.

Gold price is taking a breather after a blistering $40 rally seen on Friday, which drove the bright metal to the highest level in three months at $1,866. Reports about a potential Russian invasion of Ukraine this week roiled markets and triggered a massive flight to safety into gold price. The bullion remains in a win-win situation going forward amid rising inflation concerns and as investors watch over the geopolitical risks concerning Ukraine. Gold traders also await Wednesday’s US Retail Sales data and the Fed minutes for fresh directives.

Read: Russia could initiate military action before the end of the Winter Olympics: Could this affect stocks?

Gold Price: Key levels to watch

The Technical Confluences Detector shows that the gold price has recaptured powerful support now resistance at $1,855, as its corrective pullback fades.

That level is the convergence of the Fibonacci 23.6% one-day and the previous month’s high.

The immediate upside barrier is seen at the Bollinger Band one-day Upper at $1,859. The next bullish target appears at the previous day’s high of $1,866.

Acceptance above the latter will fuel a fresh upswing towards $1,878, the pivot point one-day R1.

On the flip side, if gold price finds a strong foothold below the aforementioned $1,855, then the Fibonacci 23.6% one-week at $1,851 will get tested.

Further down, the Fibonacci 38.2% one-day at $1,848 will come to buyers’ rescue. The last line of defense for gold bulls is aligned at $1,843, the intersection of the Fibonacci 38.2% one-week, SMA10 four-hour and pivot point one-month R1.

Here is how it looks on the tool

About Technical Confluences Detector

The TCD (Technical Confluences Detector) is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc.  If you are a short-term trader, you will find entry points for counter-trend strategies and hunt a few points at a time. If you are a medium-to-long-term trader, this tool will allow you to know in advance the price levels where a medium-to-long-term trend may stop and rest, where to unwind positions, or where to increase your position size.

GOLD PRICE FORECAST: XAU/USD REVIVES HOPES AMID RUSSIA-UKRAINE GEOPOLITICAL RISKS

14 February 2022, 09:04

Gold price is trading around $1,850, retreating from three-month highs of $1,866, as investors take profits off the table after the recent upsurge. But as FXStreet’s Dhwani Mehta notes, XAU/USD is set to resume the uptrend.

Golden cross remains in play

“The looming geopolitical tensions between Russia and Ukraine will remain the biggest risks for markets, which could potentially keep gold underpinned.”

“Immediate support is seen at $1,846, the 23.6% Fibonacci Retracement level of the rally from January 28 that peaked out last Friday. Further south, the February 10 highs of $1,842 will be tested, below which floors could open up towards 38.2% Fibo level of the same ascent.”

“The correction appears short-lived for gold, as the golden cross remains in play while the 14-day Relative Strength Index (RSI) still holds comfortable above the central line, despite the latest downtick.”

“If buyers regain poise, then a retest of the multi-month highs at $1,866 will be inevitable. The next critical resistance area is seen around $1,870-$1,872 price zone, which is the November peaks.

GOLD FUTURES: RECOVERY HAS FURTHER LEGS TO GO

14 February 2022, 08:22

Open interest in gold futures markets rose for the fifth consecutive session on Friday, this time by around 16.2K contracts considering flash data from CME Group. Volume followed suit and went up for the second straight session, now by nearly 5K contracts.

Gold now targets $1,877

Friday’s strong upside in the precious metal was amidst rising open interest and volume, leaving the door open to the continuation of the uptrend in the very near term and with the immediate target at the November 2021 high at $1,877 per ounce troy.


Saturday, 12 February 2022

GOLD PRICE FORECAST: XAU/USD RALLIES ABOVE $1860 AS US INTELLIGENCE REPORT RUSSIA COULD INVADE UKRAINE NEXT WEEK

11 February 2022, 21:10

  • Geopolitical developments sent the yellow metal skyrocketing above $1,860.
  • XAU/USD threatens to break a nine-month-old downslope trendline around $1,850-60.

Gold (XAU/USD) approaches the weekend on the right foot, up 2.36% in the week at press time. At the time of writing, XAU/USD is trading at $1,850. Since around 18:30 GMT, geopolitical developments concerning the Ukraine – Russia conflicts spurred a jump of $20 since 18:35GMT from $1,840 to $1,860.

According to a PBS NewsHour reporter, “the US believes that Russian President Vladimir Putin has decided to invade Ukraine and already communicated those plans to the Russian military. Two Biden administration officials said they expect the invasion to begin as soon as next week.

The reporter continued “that US defense officials anticipate a “horrific, bloody campaign” that begins with two days of bombardment and electronic warfare, followed by an invasion, with the possible goal of regime change. Reportedly, the North Atlantic Council was briefed on the new intel today.”

Putting this aside, the financial market mood is dismal, as US equities trade in the red, while the greenback underpinned by US Treasury yields up, climbs 0.28%, at 95.85. 

Friday’s US economic docket was light in the North American session. The University of Michigan Consumer Sentiment Index for February came at 61.7, lower than the 67.5 estimated and trailed the January 67.2 figure. Concerning inflation expectations for 1 and 5 years, consumers expect it at 5.0% and 3.1%, respectively. 

On Thursday, the St. Louis Fed President, James Bullard, on an interview with Bloomberg, said that he favors 1% of rate increases to the Federal Funds Rate (FFR) by July 1st. When asked about a 50 bps increase in the March meeting, he said he does not want to “prejudge that meeting.”

XAU/USD Price Forecast: Technical outlook

The XAU/USD is neutral biased, but geopolitical issues sent the yellow-metal surging towards a nine-month-old downslope trendline, around $1850-60 region, which, if it gives way, would expose the November 16th, 2021 high at $1,877, followed by June 1st, 2021 daily high at $1,916.61.


Friday, 6 August 2021

Gold Supported Prior To NFP


Gold made a small breakout yesterday, but it is supported prior to the NFP. We might see a move up before the NFP.

The main even the Nonfarm Payrolls will determine the move in gold. However, we might expect a small move to the upside prior to the news. After the NFP, we could see the following scenarios:

  1. Move up from the 1799 zone towards 1812 and if it breaks 1830.
  2. 1830 holds and we have a sell trade there.
  3. 1830 breaks and 1855 is next.
  4. 1795 breaks and the price goes lower to 1786.
  5. 1786 breaks and 1765 is retested.

Watch for the full NPF report and trade GOLD.


Friday, 30 July 2021

Gold Price Outlook Shifts Rosy Post FOMC, XAU/USD Eyeing US GDP Data Next


Anti-fiat gold prices climbed over the past 24 hours following Wednesday’s FOMC monetary policy announcement. The central bank left benchmark lending rates and the pace of quantitative easing unchanged, as widely expected. The details of the statement, as well as Chair Jerome Powell’s press conference, depressed the US Dollar and Treasury yields.

When both the latter are falling, it tends to bode well for XAU/USD given that it is a non-yielding asset. There was a kneejerk reaction to the Fed. Markets were initially spooked by the statement as the central bank noted that the economy made progress to its maximum employment and price stability goals. Policymakers noted that they are closer to tapering.

However, the mood quickly reversed course as it soon became clear that the central bank is still quite dovish. Powell said that the labor market is ‘some ways off’ before reaching substantial further progress. He reiterated that inflation is transitory. Treasury yields quickly turned lower as his commentary likely suggested that tapering is still not quite around the corner just yet, opening the door to optimal stock market conditions.

The first estimate of US second-quarter GDP is due over the coming 24 hours. Annualized growth is expected at 8.5% q/q from 6.4% prior. Atlanta’s Fed GDPNow Q2 real growth estimate has been notably trending lower since April, currently standing at 6.4%. A softer-than-expected outcome could underscore the central bank’s hesitation. If such a result depresses bond yields further, gold could continue benefiting.

Gold Technical Analysis

Gold prices may be readying to extend recent gains after prices recently pierced a near-term falling trendline from earlier this month on the 4-hour chart below. This also follows positive RSI divergence, showing that downside momentum was fading. Extending gains may see prices aim for the July 15th high at 1834. That would also leave XAU/USD back above the 200-period Simple Moving Average.

XAU/USD 4-Hour Chart

Gold Price Forecast: XAU/USD pokes key hurdle around $1,835 amid risk-on mood


Update: Gold (XAU/USD) prints the heaviest daily gain in 11 weeks, despite recently easing from the monthly top, by the end of Thursday’s North American trading session. That said, the yellow metal jumped to $1,832.70 before stepping back near $1,828.50 by the press time.

Strong gains of the gold prices could be linked to the US dollar’s performance and a broad optimism in the market.

The US Dollar Index (DXY) dropped to a one-month low, posting a four-day losing streak, before closing around 91.91 with 0.39% daily losses. In doing so, the greenback gauge ignores the three basis points (bps) of an upside by the US 10-year Treasury yields to 1.266%. On the same line, the Wall Street benchmarks also posted mild gains by the end of the day’s trading.

After the Fed’s resistance to discuss tapering, downbeat US Gross Domestic Product (GDP) figures for Q2 and other US data justified the need for tapering and propelled market sentiment. The preliminary reading of the US Q2 GDP dropped below 8.4% expected to 6.5%, versus 6.4%, quarterly while the Pending Home Sales for June eased and weekly Jobless Claims also jumped.

Other than the data, chatters over US President Joe Biden’s infrastructure spending also favored the market’s mood.

Moving on, gold’s further upside hinges on its break of the $1,835 monthly high, as it has already crossed the 200-DMA level of $1,821, before reaching the $1,845 hurdle.

End of the US session wrap.

After closing in the positive territory on Wednesday, gold preserved its bullish momentum and reached its highest level in two weeks at $1,832 before going into a consolidation phase. As of writing, the XAU/USD pair was up 1.35% on a daily basis at $1,831.

On Wednesday, the greenback came under strong bearish pressure after FOMC Chairman Jerome Powell adopted a patient tone regarding the beginning of asset tapering. Although Powell acknowledged that inflation was currently above desired levels, he reiterated that temporary factors were behind rising price pressures. Reflecting the broad-based USD weakness, the US Dollar Index (DXY) closed the third straight day in the negative territory.

During the first half of the day on Thursday, the USD struggled to find demand and the disappointing macroeconomic data releases caused the currency to continue to weaken in the American session.

The US Bureau of Economic Analysis announced that the US economy grew at an annualized rate of 6.5% (first estimate) in the second quarter. This reading followed the 6.4% expansion recorded in the first quarter and came in worse than the market expectation of 8.5%. Other data from the US revealed that there were 400,000 Initial Jobless Claims in the week ending July 24, compared to analysts' estimate of 380,000. Finally, the US National Association of Realtors reported that Pending Home Sales declined by 1.9% in June. Currently, the DXY is trading at its lowest level in a month at 91.90, losing 0.4% on the day.

On Friday, the Personal Consumption Expenditures (PCE) Price Index, the Fed's preferred gauge of inflation, will be looked upon for fresh impetus. The Core PCE Price Index is expected to rise to 3.7% on a yearly basis from 3.4% in May. A stronger-than-expected reading could help the USD limit its losses but the Fed seems certain that inflation will come back down eventually and the market reaction is likely to remain short-lived.

Gold technical outlook

On the daily chart, the Relative Strength Index (RSI) indicator rose to 60 on Thursday, suggesting that the bullish momentum is still intact and there is more room on the upside before XAU/USD become technically overbought. Additionally, gold looks to close above the 200-day SMA for the first time since mid-June, confirming the bullish bias. 

On the upside, the initial resistance is located at $1,834 (July 15 high) ahead of $1,845 (May 10 high) and $1,860 (Fibonacci 23.6% retracement of April-June uptrend). 

Supports, on the other hand, are located at $1,830 (50-day SMA), $1,820 (200-day SMA) and $1,800 (psychological level, 100-day SMA and Fibonacci 50% retracement).

Wednesday, 21 July 2021

Gold Price Forecast: XAU/USD remains on track to test key $1792 support – Confluence Detector

Gold price is extending its corrective downside on Monday, reversing half the previous week’s gains, as the safe-haven demand for the US dollar remains unabated amid broad risk-aversion. Investors fret about the escalating Delta coronavirus variant cases globally and its impact on the pace of the economic recovery. Markets are in a ‘sell everything mode’ and seem to trust only the ultimate reserve currency, the US dollar, in times of panic and uncertainty. Meanwhile, mixed US Retail Sales and Consumer Sentiment data spurred inflation risks on growth, as the Fed prepares for monetary policy normalization.

lack of healthy support levels.

Gold Price: Key levels to watch

The Technical Confluences Detector shows that gold price has taken out all the key support levels, as the sell-off resumes towards a minor cap at SMA100 four-hour of $1796.

Further south, powerful support at $1792 will test the bearish commitments. That level is the confluence of the SMA100 one-day, pivot point one-week S1 and the previous week low.

The last line of defense for gold bulls is seen at the Fibonacci 23.6% one-month at $1790.

On the flip side, immediate resistance is aligned around $1809, where the SMA10 one-day, Fibonacci 61.8% one-week and the previous day low converge.

Gold buyers need to find a strong foothold above $1813 to unleash further recovery gains. At that point, SMA50 four-hour, SMA200 one-hour and Bollinger Band one-hour Middle merge.

Up next the bulls will target the intersection of the Fibonacci 38.2% one-week and Fibonacci 23.6% one-day at $1815.

Here is how it looks on the tool   

About Technical Confluences Detector

The TCD (Technical Confluences Detector) is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc.  If you are a short-term trader, you will find entry points for counter-trend strategies and hunt a few points at a time. If you are a medium-to-long-term trader, this tool will allow you to know in advance the price levels where a medium-to-long-term trend may stop and rest, where to unwind positions, or where to increase your position size.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled

Tuesday, 6 July 2021

'Fool's Gold' Actually Contains a Newly Discovered Type of Real Gold, Scientists Find


'Fool's Gold' Actually Contains a Newly Discovered Type of Real Gold, Scientists Find

DENIS FOUGEROUSE, THE CONVERSATION

28 JUNE 2021

The mineral pyrite was historically nicknamed fool's gold because of its deceptive resemblance to the precious metal.

The term was often used during the California gold rush in the 1840s because inexperienced prospectors would claim discoveries of gold, but in reality it would be pyrite, composed of worthless iron disulfide (FeS₂).

Ironically, pyrite crystals can contain small amounts of real gold, although it is notoriously hard to extract. Gold hiding within pyrite is sometimes referred to as "invisible gold", because it is not observable with standard microscopes, but instead requires sophisticated scientific instruments.

It wasn't until the 1980s when researchers discovered that gold in pyrite can come in different forms – either as particles of gold, or as an alloy, in which the pyrite and gold are finely mixed.

In our new research, published in Geology, my colleagues and I discovered a third, previously unrecognized way that gold can lurk inside pyrite. When the pyrite crystal is forming under extreme temperature or pressure, it can develop tiny imperfections in its crystal structure that can be "decorated" with gold atoms.

What are these 'crystal defects'?

The atoms within a crystal are arranged in a characteristic pattern called an atomic lattice. But when a mineral crystal such as pyrite is growing inside a rock, this lattice pattern can develop imperfections.

Like many minerals, pyrite is tough and hard at Earth's surface, but can become more twisty and stretchy when forming deep in the Earth, which is also where gold deposits form.

When crystals stretch or twist, the bonds between neighboring atoms are broken and remade, forming billions of tiny imperfections called "dislocations", each roughly 100,000 times smaller than the width of a human hair, or 100 times smaller than a virus particle.

The chemistry of these atomic-scale imperfections is notoriously difficult to study because they are so small, so any impurities are present in absolutely minuscule quantities. Detecting them requires a specialized instrument called an atom probe.

An atom probe can analyze materials at extremely high resolution, but its main advantage over other methods is that it allows us to build a 3D map showing the precise locations of impurities within a crystal — something that was never possible before.

Our research reveals that dislocations within pyrite crystals can be "decorated" with gold atoms. This is particularly common where the crystals have been twisted during their history; here, gold can be present at concentrations several times higher than in the rest of the crystal.

A potential goldmine

Why should anyone care about something so tiny? Well, it gives interesting insights into how mineral deposits form, and is also a potential boon for the gold mining industry.

Previously, it was suspected that gold in anomalously rich pyrite crystals was in fact made of gold particles formed during a multi-step process, suggesting the pyrite and gold crystallized at different times and then became clumped together.

But our discovery that gold can decorate these crystal imperfections suggests that even pyrite crystals with relatively high gold content can form in a single process.

Our discovery may also help gold miners more efficiently extract gold from pyrite, potentially reducing greenhouse emissions. To extract the gold, the mineral is usually oxidized in large reactors, which uses considerable amounts of energy.

Dislocation sites within crystals could potentially offer an enhanced partial leaching or a target for bacteria to attack and break down the crystal, releasing the gold in a process known as "bio-leaching", thus potentially reducing energy consumption necessary for extraction. This idea is still untested, but definitely merits investigation.

If it helps pave the way for more sustainable gold-mining methods, then perhaps fool's gold isn't so foolish after all.

Perhaps pyrite still lives up to its historic reputation of "fool's gold" until better, more environmentally sustainable ore processing techniques are developed.

Denis Fougerouse, Research Fellow, School of Earth and Planetary Sciences, Curtin University.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Tuesday, 22 June 2021

Chart Of The Day: Will Gold Take Flight Because Of Surging Yields?


Gold found its footing this morning, after the precious metal last week registered its worst weekly performance in 15 months.

The 6.2% lower settlement at the close of the previous week's trade puts the yellow metal at a fundamental value of 46%, when calculating the StateSide “M2” money supply of $3,870, even after including the supply increase for the metal of 201,480 tonnes.

While Wells Fargo forecasts that an inflation breakout will push yields back above 2% in the coming months—for the first time since mid-2019—for now, yields have plummeted, after the market priced in the Fed's new, more hawkish stance which could include a hike in interest rates in 2023...or even sooner.

Current, falling yields decrease the allure of Treasuries, but burnish gold's luster, which may be why the precious metal has steadied. And on the technical chart, Wells Fargo's prediction could end up being in alignment.

Whatever your interpretation of the reason, 10-year Treasury yields topped out as investors rushed back into US sovereign bonds. However, that could slow this week, allowing yields to find support above the uptrend line since the August low.

The 200 DMA joined the uptrend, revealing its technical significance, reinforcing its support, solidifying the uptrend line into the bottom of a rising channel.

Gold’s drop last week pushed it back into a falling channel. On its face, we should expect the price to retest the March-April lows. However, notice, where gold found support.

Bulls picked it up at the exact same level as the November low. Coincidence? Maybe. But it could also be the formation of a large H&S continuation pattern.

On the weekly chart, it’s clear that gold is still in a long-term uptrend, sitting above its uptrend line, intertwined and bolstered by the 100 weekly MA. The MACD and the RSI found support above the lows since 2018.

How would that jibe with Wells Fargo’s call that rates could be headed back above 2%? Earlier we said that gold enjoyed newfound demand thanks to dropping yields. So wouldn't that mean rising yields would siphon off funding for gold?

To begin with, the question is predicated on yields actually rising. And of course, they may not.

Second, if yields do get that high, it’s because investors are NOT buying Treasuries, since rates move in opposition to the sovereign bonds themselves. So however higher rates may go, they will still not compensate for the inflation risk, which potentially erodes a bond’s future cash flow.

What then do people buy to preserve the value of their capital? Historically, that's been gold.

It seems like we’ve just made a case for gold on the fundamentals, but, again, that depends on whether inflation is systemic or transient as well as how long will it stick around and how bad it might become.

In other words, the future is still unknown, and that includes the outcome of this trade, which is also complex. Therefore, we'll provide technical guidelines for just the short- to medium-term.

Trading Strategies

Conservative traders should wait for the medium downtrend to match with the long-term uptrend.

Moderate traders would go short if gold falls below the long-term uptrend line or go long if the price closes above the falling channel.

Aggressive traders could go long in order to capture a potential rebound, having reached the long-term uptrend line, reinforced by the 100 weekly MA, banking on an inflation-driven gold rally.

As important, if not more so than the analysis, is a sound trading plan that fits your needs. Here are the basic parameters for a coherent plan:

Trade Sample

  • Entry: $1,775
  • Stop-Loss: $1,750
  • Risk: $25
  • Target: $1,900
  • Reward: $125
  • Risk:Reward Ratio: 1:5



Saturday, 19 June 2021

Gold Suffers Worst Week in 15 Months After Fed Drama


Gold bulls suffered their worst week since the 2020 Covid outbreak as prices fell almost 6% on the Federal Reserve’s expedited timetable for rate hikes and stimulus tapering.

The moves generated fear beyond the necessary which played out well for the yellow metal’s bears.

Front-month gold futures on New York’s Comex settled at $1,769 per ounce on Friday, down $5.80, or 0.3%. For the week, the decline was $110, or 5.9%, the biggest drop in Comex gold since the week ended March 6, 2020. The loss came after a seven-week low of $1,768 set for the benchmark gold futures contract on Thursday.

The spot price of gold was at $1,765.53 by 4:00 PM ET (20:00 GMT). That was down by $7.78, or 0.4%, on the day, and off by $111, or almost 6%, on the week.

Traders and fund managers sometimes decide on the direction for gold by looking at the spot price — which reflects bullion for prompt delivery — instead of futures.

The Federal Reserve signaled at the end of its monthly policy meeting on Wednesday that it will raise interest rates at least twice by the end of 2023 to 0.6% from current levels of zero to 0.25%.

The Fed also said it was looking out for data on when to start tapering its monthly asset purchase of $120 billion. The central bank has been buying at least $80 billion in Treasury bonds and $40 billion in mortgage bonds to support credit markets and the economy since the COVID-19 outbreak last year.

The well-expected moves still managed to generate more market panic than necessary, sending the previously-battered Dollar Index rallying on the rate hike expectations and hammering commodities priced in the currency, including gold. Bears in the yellow metal loaded up massively on shorts a day after the Fed’s announcement, despite U.S. weekly jobless claims on Thursday that had been supportive to gold.

Adding somewhat to the pressure on gold was St. Louis Fed President James Bullard’s observation on Friday that the central bank might have to consider raising interest rates by next year instead of 2023 as inflation could run ahead of its expectations.

Bullard is a non-voting member of the Fed but a senior one whose comments often reverberate across markets.

“The reflation trade is no more and this selling across commodities could see further short-term pressure with gold prices,” said Ed Moya, analyst at online trading platform OANDA.