Gold Prices Stuck Below Key Resistance After Rate Hike Spree
Gold prices have been struggling to break above key resistance levels after recent central bank rate hikes. The US Federal Reserve, European Central Bank, and Bank of Japan all raised interest rates in quick succession, leading to selling pressure on gold.
The Fed's decision last week, in particular, was seen as a blow to gold bulls, with Minneapolis Fed President Neel Kashkari stating that inflation is too high across the economy, not just in energy. This contradicts the argument made by doves that inflation was cooling elsewhere.
China has been buying gold consistently on dips, but this has not been enough to reverse the decline. The physical market remains under pressure from rate selling, and if gold trades back towards the September low, Chinese accumulation may start to count for more.