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0 News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/gold-price-faces-consolidation-but-year-end-rally-may-still-be-possible/
The gold market is currently in a phase of consolidation, with the metal’s one-week realized volatility dropping significantly to 12.9%.
The average daily high-low price range has tightened to just $26, signaling a period of indecision among traders. Over the past six days, gold’s price action has reflected this uncertainty, with no clear direction emerging as the market struggles to either push gold higher or lower. The upside remains constrained by the 50-day moving average, currently at $2,668, while support has been found around the $2,620 mark.
In terms of market activity, gold futures appear to have reached a fair value, as recent transactions have clustered around the $2,663.64 to $2,665.83 range over the past month. At present, the market seems content to trade within these levels, with little expectation of significant price movements, regardless of fluctuations in the U.S. dollar, real interest rates, geopolitical events, or fiscal developments. This suggests that, for now, there is a low risk of major gyrations in gold’s price.
Several factors may be influencing this pause in momentum. A 28% year-to-date rally has already positioned gold as a strong portfolio hedge, potentially leaving some market players feeling that the metal has already delivered. Additionally, a notable breakdown in gold’s traditional correlation with key economic inputs, such as the U.S. dollar and interest rates, may have prompted investors to question the metal’s current investment case. Another possibility is the absence of a clear catalyst to drive gold in either direction at this time.
However, this period of calm and indecision is unlikely to persist indefinitely. As new data and information are processed, gold’s market dynamics may shift. Moreover, the historical trend of gold closing higher in December for the past seven consecutive years suggests that seasonality could play a role in a potential year-end rally. If this trend holds, there may be one final push in gold’s price as we approach the close of the year.
News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/gold-price-faces-consolidation-but-year-end-rally-may-still-be-possible/
