Hello everyone, today is October 20th. International gold fell sharply this week, approaching the 1600 integer mark. As of press time, trading around $1,625/ounce. So how will international gold perform next?

Hello everyone, today is October 20th. This week, international gold fell sharply, approaching the 1600 integer mark. As of press time, it was trading around $1625/ounce. So how will international gold perform next?

International Gold launches a battle to defend the 1600 mark!

In 2022, international gold rose first and then fell. First, it took advantage of the geopolitical risk incidents of Russia and Ukraine, and risk aversion sentiment heated up sharply. A large amount of funds poured into the gold market for protection. Therefore, the gold price soared, reaching the highest point in 2020; but now, the conflict between Russia and Ukraine has not been resolved, and it has even become more and more intense, but the gold trend has not been able to emerge from the rising market, but instead a roller coaster market has emerged. The gold price has fallen all the way to around 1620. The main reason is that it is affected by the sharp rise of the US dollar index . The two themselves are negatively correlated, so this is also one of the main reasons for the weakening of gold prices.

In addition, in this round of global high inflation, the inflation attribute of gold price-happy is difficult to reflect. The reason is that due to the continuous over-issuance of US currencies, a large amount of funds flowing into the gold market. The trading attributes of gold are getting stronger and stronger. In conjunction with the leverage attributes, gold has become more and more an financial product , and it has gradually lost its anti-inflation attributes. Since Fed continued to raise interest rates this year, a large number of US dollars flowed back to the United States, resulting in a sell-off in gold, and therefore a decline. Therefore, investors at present should not hope to resist inflation by buying gold. The decline of gold is just the beginning.

International gold still has room for decline in the short term!

From the weekly K-line trend, after the gold price fell below the upward trend line, the overall trend was weak, and the gold price also fell below the above volatility range. The head has formed in the medium and short term, so the market will continue the decline trend in the future. If it falls below the previous low of 1614, the gold price will start a new round of decline!