- Inflation fears, Dollar rebound, and trade tensions push Gold into bear territory.
- Inflation expectations see the Fed set for multiple rate hikes in 2018, which will keep a barrier over precious metals.
Gold is back into a fresh six-month low, testing the 1,250.00 area as trade concerns and inflation expectations continue to drag bullion lower.
The US’ spat with China over tariffs and technologies continues to drive overall markets, and broad anticipation of an acceleration of tensions is propping up the USD, applying downside pressure to Gold.
Further keeping Gold on the bearish side is expectations for a further two hikes from the US Federal Reserve this year, and a recovery for US equities on Thursday helped push gold into new lows for 2018.
Gold levels to watch
With Gold’s steady march lower, the next support level is the November 2017 low sitting at 1,240.00, while a bullish snap will have plenty of ground to cover, with May’s swing low at 1,280.00 and June’s high above that at 1,310.00.
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