Gold Support Levels Spark Seller Alert as Energy Prices Rise

Gold prices have been holding their ground despite higher energy costs and rising expectations for Federal Reserve interest rate hikes. However, TD Securities commodity analysts Ryan McKay and Bart Melek warn that if gold breaks below specific support levels, major funds could become sellers.

The yellow metal has managed to maintain its value in the face of increased energy prices and a stronger dollar, but Commodity Trading Advisors (CTAs) and large investment firms may start selling if gold drops below $4,367/oz or $4,300/oz. In their recent note, McKay and Melek wrote that these levels are crucial for gold's short-term performance.

The analysts also highlighted the importance of inflation data in determining gold prices. They stated that strong economic indicators and a hawkish Federal Reserve could lead to modest near-term selling rather than significant price drops.