WGC Published Latest Edition of Weekly Market Monitor

SEATTLE (Scrap Monster): The latest edition of the Weekly Markets Monitor Report published by the World Gold Council (WGC) stated that gold remains at the risk of a more protracted correction or consolidation from a technical view.

During the previous week, attention was centered on unexpected headline U.S. job gains and the budget bill. The trade policy developments continued to draw focus. The global equities recorded mixed trend, with U.S. benchmarks hitting new highs and European stocks fluctuating. The treasury yields rose, while the dollar weakened further.

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Throughout the week, the price of gold rose again. Last week, the LBMA Gold Price PM in USD increased by 1.8% to US$3,332/oz. The prices have increased by 28% so far this year. The increase in gold prices was aided by the declining value of the dollar and growing anxiety over inflation and the growing deficit. In the meantime, inflows into global gold ETFs decreased over the past week. According to the WGC report, option traders' bullish positioning held firm, indicating a short-term resurgence of interest in gold.

At US$3,395/oz, the yellow metal's price has been halted below short-term resistance. The prices would then reach their first support level of US$3,246/oz if they were to consistently go below their medium-term 55-day moving average of US$3,325/oz.