Gold prices were under pressure again in the Tuesday Asian trading session, languishing below area multi-week highs. Unfortunately, all the market got was some follow-through selling. Given this lack of participation, traders doubted the strength of the current bearish conviction leading price action to recent lows.
During the entire session gold traded in the negative showing clearly that there is a strong negative undertone. Every time the precious metal tried to rise, it met with strong opposition that backpedaled the commodities’ progress. Given the persistent market sentiment, gold prices continue to be on the backfoot and appear vulnerable and uncertain, analysts observed.
These unpredictable movements in gold pricing have sent shock waves through the investor community. Market watchers noted that despite the lack of extreme selling pressure, the mood was still one of trepidation. Most market players are waiting for clearer signal(s) that will either suggest a reversal or a further strengthening of the current trend.
“Gold price keeps the red below multi-week high; lacks follow-through selling.” – www.fxstreet.com
With gold still sailing through these complex waters, traders remain constantly attuned to external factors and forces that can shift gold’s sails mightily. Economic indicators like inflation and geopolitical developments such as the Russia-Ukraine conflict will likely be key factors influencing market sentiment moving forward.