Gold Rebounds
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Gold and silver are forming bullish price patterns as the US Dollar Index continues to decline after hitting strong resistance at 100.65.
A new bullish bias might push gold back to its May peak of $3,438 (May 7), just ahead of the all-time high of $3,500 (April 22). If the selling tendency regains pace, the metal may approach the transitory 55-day SMA at $3,203, then the May low of $3,120 (May 15) and the short-term 100-day SMA at $3,037.
Gold recovered some heavy losses sustained earlier this week, as markets were once again rattled by uncertainties around US President Donald Trump’s global tariffs agenda and the strength of the US economy.
Gold price rebounds after tariff ruling weakens the dollar. Legal uncertainty and Fed rate outlook support a bullish near-term gold market forecast.
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Producers of metals and other raw materials fell as the U.S. dollar recouped some of its recent losses. Gold futures continued a recent retreat, as optimism about the outlook for trade negotiations depleted safe-haven demand. The inflation concerns that drove up the price of gold and weighed on the U.S. dollar could return, however.
If it’s a mere ‘relic,’ to use Keynes’s word for the gold standard, why are major governments hanging on to their gold?
HB 999 “recognizes gold and silver coin as legal tender for payment of debts,” but also mandates “additional requirements regarding privately ensuring deposits’ security, record keeping, and maintaining separate ledger accounts for money services that effectuate transactions involving gold or silver coin.”
Gold prices slipped on Tuesday as the dollar regained some lost ground, while persistent concerns over the U.S. fiscal outlook and anticipation of key economic data kept investors cautious about the interest rate trajectory.