Gold had a busy time last week, it opened at $1,215.69 an ounce last Monday to then rally to $1242.93 on Tuesday, and it then tested a low of $1,208.88 on Friday. The performance of this shiny metal has been subdued over the past weeks compared to the beginning of the year. From January 4th it jumped nearly 19% in the space of 6 weeks, when in it touched $1,263.63. Since then it tested a new most recent high on March 10th at $1,273.29 but has been trading in a zig zag pattern to the downside.
Gold price benefitted from the stock market sell‐off that hit exchanges globally at the beginning of the year. As the precious metal is considered a safe haven it found renewed bullish momentum to buck its multi‐year long bear trend. Dovish talk from the Federal Reserve then helped keep the momentum going. More recently however, the stock market has begun to perform well on the back of expectations of a slower pace in the Federal Reserve’s tightening of monetary policy. The stock market rally has softened the strength of the rally in Gold, and further positive performance in stocks may weigh on Gold price.
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