Gold Price Slips Amid War and Inflation Concerns

A recent shift in sentiment on gold prices has led to a change of heart from a bullish outlook just three weeks ago. The forecast, as published in 'Still Lower Gold Ahead', suggests that despite ongoing war and inflation concerns, gold may not hold its ground.

The previous increase of +7.3% from 4432 to 4755 is now being challenged by a downward trend. This comes after gold recorded its fourth down week in five, with the parabolic trend showing signs of weakening. The current price at 4321 sits just above the flip-to-Short level of 4190.

Despite these concerns, there are still reasons to be optimistic about gold's future performance. The support zone of 4316-3955 and the 'Floor' of 4000 remain intact, with Fair Value currently at 4001. A recent test of Fair Value saw a price rebound, reaching 4755.

The ongoing war between USA/IRN (and other nations) continues to have a negative effect on gold prices, with the Dollar getting a bid to purchase Oil. The percentage tracks since February show gold decreasing by 13%, while the Dollar Index has risen by 10%. Bitcoin has also seen a decrease of 14%.

The upcoming Personal Consumption Expenditures for August and the FedFunds futures are expected to have an impact on interest rates, which could further negatively affect gold prices. However, it is worth noting that rising interest rates have not always been a guarantee of lower gold prices in recent history.