Trading Price of Gold (XAU) Finally Recovered from a Multi-Month Low Level
After a long time, the trading price of “Gold” has started showing signs of a strong recovery. It is a positive sign for gold investors that the trading price of the precious metal is moving in the upward direction. The data shows that the trading price of Gold has continued surging in the past couple of days, which is somewhat of a rare sight after a while.
Gold’s Performance on Thursday
The performance chart for Gold shows that gold had been hitting a multi-month year low on Thursday. At this particular time, the trading price of XAU/USD was at a low of $1,681. However, the trading price of gold started moving higher following a tumble.
The data shows that by the end of Thursday, the trading value of the pair had risen to $1,720.24. According to the price chart, Gold had hit the particular level, which is a weekly high it hit on Friday. This is a clear demonstration of a strong movement of gold as it showed a sharp elevation.
Gold’s Performance on Friday
On Friday, gold performed really well and its price went all the way up to $1,739.27. It was expected that the price of gold may continue rising on Friday and it will be able to hit a crucial value of $1,750.
However, it seemed that the trading value of XAU/USD was not able to hit the particular mark. The trading value of the pair ended up settling at $1,723.62.
The Companies’ Earnings have soured the Appetite of Investors
It was expected that the price of gold may continue growing stronger and may reach even higher. However, the earnings shared by the major tech companies were not as promising as the investors had expected.
The entire S&P 500 index ended up experiencing an almost 1% dip in the stock price market on Friday. The dip came mainly because of Snap, which posted very disappointing earnings for the second quarter.
This led to the investors backing out from their investments, thus, pulling the trading price of gold even lower.
The recent announcements from major companies have reignited the recession fear among investors. As the prices of the USD started to move higher, the fear of the investors started to rise even more.
Therefore, to save their investments, the investors started accumulating gold early Friday, which pushed the trading price of gold to its all-week high.
In the upcoming week, it is expected that the US Federal Reserve may increase the inflation rates by 75 bps. This would increase the FFR all the way up to 2.50%. Therefore, the price of gold may rise as the investors would try and accumulate it to fight growing inflation.