Gold rose in Asia and has since maintained its gains in quiet holiday trading. Its price has risen from $53 to $4,147 and is looking to rise for the first week in five.
Today’s gains came in a rally in Asia and peaked at $4,194 before falling sideways.
Gold 10 minutes
Gold has been facing difficulties since it reached the level of $5,418 before the start of the Iranian war. This event caused a withdrawal of reserves and a strike by sovereign buyers as the rise in oil prices caused currency fluctuations. Even with the end of the war, it has been slow to abate, partly due to frequent or sporadic fighting and the lack of a real peace agreement.
However, there have recently been signs of buying around $4,000 in what could be a reload for SWFs, or at least dipping their toes into it.
The other problem for gold is the strength of the US dollar. A series of strong jobs reports and other indicators show that the AI capex boom is keeping the US economy uniquely strong. This was exacerbated by financial flows into US markets and the pricing in of Fed interest rate cuts.
However, yesterday’s non-farm payrolls numbers were weaker than expected and we saw widespread weakness in the US dollar and a big jump in gold. Today is a holiday in the United States, so we do not get any economic data, but the numbers traded during the summer will be the driver of the movement of gold prices. Additionally, profits from big tech will serve as clues as to whether capital spending on AI will continue into 2027.
Technically, gold appears to be trying to form a base at $4,000 but will need to at least reclaim the $4,400 level to generate any real positive momentum to the upside. A test of this level was quickly rejected in July, highlighting the volatile market.
Gold daily
