World gold price continues to decline sharply, long-term selling

World gold prices increased with spot gold increasing by 2.1 USD to 2,017.4 USD/ounce. Gold futures last traded at 2,029.4 USD/ounce, up 5.3 USD compared to yesterday morning.

Gold continues to recover from last week's sell-off after testing support at $2,000 an ounce. Although gold is starting the trading week with modest gains, some analysts say it will remain stuck in a range with support at $2,000 an ounce and resistance around $2,050. ounce.

Last week, both consumer and producer prices rose more than expected, putting pressure on gold. The published report shows that the threat of inflation is still persistent.

Although gold is stuck, some analysts still emphasize the importance of this precious metal. According to market analyst James Hyerczyk of Fxempire.com, precious metals are still an important safe haven asset when developments in the Middle East are increasing geopolitical instability.

He attributed gold's recent recovery to a weakening dollar and fears of rising tensions in the Middle East, which have helped boost gold's status as a haven asset. Safety is preferred.

Some other opinions believe that the possibility that the US Federal Reserve will loosen policy this year is also a supporting factor for gold and this precious metal to break out when the first round of policy easing takes place. .