Gold prices declined after demand arose for the dollar as a safe haven. The precious metal was trading at $1,802.70/oz on Wednesday afternoon and could fluctuate between $1,800-1,810. The odds are that a successful attack on the lower bound of the short-term range will open the door to $1,785.
There are still no fundamental reasons for gold to go up. The demand for precious metals from the jewelry sector is moderate, while the same is true in industry. Interest in gold as a risk hedging asset has declined noticeably this year. Gold is no longer viewed by the global capital market as a safe haven against rising inflation – it is is partially being replaced by Bitcoin, although it must be admitted that the replacement is completely unequal.
The price of gold has fallen by a little more than 6% this year, but the long-term outlook for the precious metal remains quite positive with the likelihood of a retracement to $1,850 and higher.