Gold Price Pressured on Declining Demand

The global economy seems to be at a remarkable inflection point. Tightening monetary policies amid high inflation could slow down global economic growth in 2023. This background is typically positive for gold and this the say of history.

Gold Price is under pressure, so, it is taking on a critical micro trendline. This has brought about bias on the downside while below $1,780 and a break of $1,702; therefore, opening the risk of retreating to the $1,670 territory.

The Gold Price is consolidated towards the lows of the US session range near $1,777.00. XAU/USD fell from a high of $1,808 to a low of $1,774 on Thursday due to a stronger US Dollar.

Gold fell amid the decline in investor demand. Interest rate hikes, by several major central banks, have impacted gold in 2022. Although markets expect the US Fed Funds Rate to peak at 5%, a pause in rate hiking could turn market sentiment in favour of gold.

Technically; gold price is on the backside of the bearish cycle and has been advancing through the various resistances higher in a short squeeze. If the bulls can get above $1,800, then it is expected to head forward towards $1,850 and even $1,880.