Gold Remains Under Pressure as Global Economies Begin Re-Opening

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Azeez Mustapha

Updated: 13 October 2022

The price of Gold (XAU/USD) fell in the Monday trading session as the economic life in Europe seems to be getting friendlier for risky assets, thereby diminishing demand for safe-haven assets. At 13:45 GMT, the gold spot dropped by about 0.6% reaching a low of $1,721/oz.

With the European equity market picking up buoyancy and the budding US-China tensions causing the dollar to be in demand, gold has remained under pressure for most of today.

General Manager of ABC Bullion in Sydney, Nick Frappell, said in his weekly preview that gold might drop to the $1712-10 support levels in the short term. However, he strongly believes that if this happens, it could pave the way for a very powerful bullish breakout.

Also, Japan has announced that it is ready to remove the state of emergency restriction in five regions in the country ahead of schedule. This decision is indicative that the coronavirus pandemic is slowing down in several parts of the world, giving riskier assets more demand.

Gold (XAU) Value Forecast — May 25

XAU/USD Major Bias: Bullish

Supply Levels: $1,745, $1,763, and $1,797

Demand Levels: $1,722, $1,717, and $1,700

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