Gold price today 3.8: Going down, under a lot of pressure

The world gold price on Kitco is currently $1,934.7 per ounce, down $10.9 from the previous session's opening. In just two trading sessions, the price has dropped more than $23 per ounce.

Factors like inflation, a strong labor market, and robust economic activity are supporting the Federal Reserve's aggressive monetary policies, which are affecting the gold market.

Daniel Pavillonis, a senior market strategist at RJO Futures, attributes the drop in gold prices to the strengthening US dollar, which is keeping prices below $2,000 per ounce.

The US dollar has gained strength due to the World Monetary Fund (IMF) raising its forecast for global economic growth in 2023. The IMF predicts a 3% increase in global gross domestic product (GDP), up from the previous forecast of 2.8%.

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Edward Moya, senior North America analyst at OANDA, sees gold's potential as the market understands the impact of Fitch's downgrade.

“The gold market will struggle as the US curve continues to fall,” he said. “The VIX is up and it looks like Wall Street is worried. Gold will eventually act like a bully,” he said. safe haven as equities remain vulnerable as upbeat outlook is growing."

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“Once things settle down, gold could come back as a safe haven,” said Michele Schneider, director of trading research and education at MarketGauge.

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The recovery of the economies of Europe and China may also slow down the rise of the dollar, thereby pulling gold prices up.

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In his latest gold report, Bart Melek, head of commodity strategy at TD Securities, said he expects gold to push to $2,100 an ounce, a new all-time high by the end. This year, weak economic data will change the Fed's stance.