Gold prices hit a significant low this past week, touching the 'floor' of 4000 on Friday at 02:00 GMT before rebounding briefly. The precious metal saw a swift recovery to 4050 within minutes but ultimately closed the week down 4.2% at 4010. This marks the third-weakest week for gold in the past 42 weeks, with the short-term trend continuing downward.
The fair value of gold has been adjusted to 4092, up from the anticipated 4014, due to a slight discrepancy in the reported gold tonnage. Despite this adjustment, gold remains attractively priced at current levels, trading below both its fair value and near-term market value of 4263.
Geopolitical tensions and potential Federal Reserve actions are adding to market uncertainty. U.S. Ambassador Mike Waltz suggested the USA/IRN conflict may last another year, while the Federal Open Market Committee is expected to raise interest rates next Wednesday. Inflation remains a concern, running at least double the Fed's 2% target.
While silver has shown dramatic moves in the past, it currently faces significant resistance around the 57s.