Rising US interest rates and a strong US currency have continued to apply downward price pressure on gold, but the yellow metal’s resistance is growing.
This resistance has been helped by world stock market volatility, which has seen gold perform strongly over the past month due to its safe haven status.
There are further indications that inflation is emerging, with trade tariffs and other factors likely to accelerate the inflationary process.
There are real concerns now emerging about the impact that the trade war is having on market confidence and international trade.
The Trump administration is facing an uncertain future at the upcoming mid-term congressional elections, which could provide further market uncertainty. Domestically, enormous US debt levels and rising interest rates also provide concern as the cost of servicing the debt escalates.