Gold prices hit a new record high this year, reaching levels close to $2,080 an ounce. However, over the past two months, gold has started to decline, with current levels around $1,940 an ounce. The movement of gold prices is influenced by several fundamental factors, including the Federal Reserve's interest rate policy.
The Fed has confirmed several times that it has not yet determined the final level of interest rates and that it will be flexible at its next meeting. They also mentioned that the economic data will determine this matter. Gold prices were also affected by the US debt ceiling crisis and fears of an economic slowdown.
In general, gold has recorded an increase of 6.7% since the beginning of this year, but has declined in the last two months. Based on the data and factors affecting future gold price trends, the chart indicates price stability between the support level at $1933 an ounce and the resistance level at $1985 an ounce, and the upcoming trend depends on breaching or breaking out one of these two levels.
It is important to note that the support level at $1933 an ounce is not just a horizontal support, but also a rising trend line since the beginning of the year. Thus, the outlook for the future will depend greatly on how gold behaves towards these two levels.
Next week, investors' eyes will be focused on the Federal Reserve's meeting scheduled for June 14, where the path of interest rates will be determined, and whether there will be an additional increase in interest rates or whether they will be kept at the current levels of 5.25%.
Figure 1: Gold, MetaTrader 5, Reliance Financial Investment Corporation
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