Urgent! Gold prices are crashing today—could they reach $3,500?
Gold has been moving up and down within a narrow range every day, and today the inflation figure came in at 3.7%, higher than expected. The biggest factor is energy: gasoline prices alone rose 9.1% in a month and 34.2% in a year, while Brent crude is above $107 because the Strait of Hormuz issue is ongoing. This is driving up shipping and transportation costs, and therefore prices across the board.
Here’s the part people get wrong: high inflation is supposed to push gold up, but the opposite is happening. The chain goes like this: high inflation means the Fed will raise interest rates.
Technically, most indicators are still negative, and the first support level is at 4,100. If it breaks below that, it could continue down to 4,000. The first sign of a shift to positive would be for it to stabilize above 4,180.
Gold has been moving up and down within a narrow range every day, and today the inflation figure came in at 3.7%, higher than expected. The biggest factor is energy: gasoline prices alone rose 9.1% in a month and 34.2% in a year, while Brent crude is above $107 because the Strait of Hormuz issue is ongoing. This is driving up shipping and transportation costs, and therefore prices across the board.
Here’s the part people get wrong: high inflation is supposed to push gold up, but the opposite is happening. The chain goes like this: high inflation means the Fed will raise interest rates.
Technically, most indicators are still negative, and the first support level is at 4,100. If it breaks below that, it could continue down to 4,000. The first sign of a shift to positive would be for it to stabilize above 4,180.