Gold Prices Weaken Amid Economic Strength and Higher Oil Costs

The price of gold has been experiencing a whipsaw effect in recent weeks, liquidating both buyers and sellers. According to Jaaason, this is due to a bearish trend, specifically a correction phase.

The main reasons for this downward pressure on gold prices include the last NFP report showing strong economic activity, inflation rates exceeding the 2% target set by the FED, ongoing conflict in the straits leading to higher crude oil prices, and an increased likelihood of interest rate hikes. The CME report suggests a 87% probability of raising interest rates next week.

With the war still ongoing and no immediate truce deal on the horizon, oil prices are expected to remain high, further fueling inflation. This combination of factors has led Jaaason to maintain his bearish view on gold in the short term.