World gold prices ended the longest losing streak in the past four years

Gold price The world only gained slightly in the session of May 20, as investors sought safe havens in US government bonds and the dollar after a volatile week on the US stock market. But gold recorded its first weekly gain in a month.

Closing this session, the price of gold for June delivery increased by 0.9 USD, or less than 0.1%, to 1,842.10 USD/ounce. For the whole week, the gold price increased by 1.7%, thereby ending the previous series of four consecutive declines. This is the longest losing streak for this precious metal since August 17, 2018, according to Dow Jones Market Data.

Previously, after two slightly increasing sessions at the beginning of the week, gold price turned to decrease in the session of May 18. This was also the only drop in gold’s price this week, when the following session, the precious metal recorded its biggest daily percentage gain since April 12.

U.S. government bonds have rallied this week, pushing yields lower, as a downtrend in the U.S. stock market has boosted demand for safe-haven assets. Falling bond yields have supported gold prices somewhat, as rising yields increase the opportunity cost of holding non-yielding assets like gold.

However, Ipek Ozkardeskaya, senior analyst at Swissquote Bank (Switzerland), believes that this support is short-lived, as bond yield trends remain positive in the medium-term thanks to The prospect of rising interest rates in the US.

Besides, gold prices were also supported as the dollar index, which measures the strength of the “greenback” against a basket of major currencies, has dropped 1.4% this week after fluctuating at 20 highs. previous year in this month. A strong dollar would be a “stumbling block” to commodities denominated in this currency, making them more expensive for buyers holding other currencies.

Ozkardeskaya thinks gold prices are testing resistance at the 200-day moving average near $1,837 an ounce. According to her, if the price breaks out of this level, the price of gold could move to the price range of $1,880-1,900 an ounce, and a shock in gold supply in Russia could support this outlook.

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