- Gold prices closed at $ 1,759.85, after hitting a high of $ 1,768.95 and a low of $ 1,749.20.
- The US dollar index, which measures the value of the greenback against a basket of six major currencies, hit 94.07.
- August’s trade balance posted a deficit of -73.3 billion compared to the forecast -70.5 billion, weighing down on the US dollar.
It was another frustrating day of trading for the gold market as investors focused more on short-term developments, like the greenback’s gains and Treasury yields, while ignoring the ongoing energy crisis. which results in negative growth. The US stock market saw a massive sell off on Tuesday, amid concerns over rising inflation, the energy crisis, fragile US-China trade ties, the Evergrande debt crisis in China and the deadlock on the US debt ceiling.
All of the above factors combined and dampened risk appetite for stocks, prompting investors to take refuge in the US dollar. The rise in the price of the greenback then weighed on the precious metal.
In addition, Federal Reserve Vice Chairman Randal Quarles said on Tuesday that U.S. lenders and corporate borrowers need to step up the pace of their switch from LIBOR to the new benchmark rates. He also said that after December 31, LIBOR may no longer be used in new financial contracts.
Gold Price Prediction: Is It Worth Placing a Buy Limit at $ 1,749?
Gold was trading at $ 1,756 an ounce on Tuesday, with a bearish bias. He is currently receiving immediate support at the 1754 bar, which has been extended by an intraday pivot point. Gold broke through the 1762 pivot point support mark, exposing it to the 1754 support level.
Daily technical levels
Pivot Point: 1 759.33