Gold Price Plummets as Rising Rates Test Key Support Level
The gold market has been under pressure due to rising US interest rates and concerns about energy shocks. The price of gold futures (GC1!) broke down significantly, testing key ascending trendline support above the psychologically important $4,000 level.
According to Chris, a proprietary trader with over 20 years of experience at FXEmpire, the bond market's sell-off due to inflation concerns and the Federal Reserve's hawkish stance is working against gold. He believes that if the trendline breaks down, it could expose the $4,000 support level.
The current situation has led some to speculate about a move down to the $4,000 level. However, Chris also notes that in the long term, gold is likely to be bullish once the Middle East situation stabilizes and governments' profligate spending comes into focus.