Gold: With gains of 1.7% per week, it broke the worst series in 4 years

Gold made marginal gains on Friday, with the precious metal closing in positive territory on a 5-day basis, ending the longest series of weekly losses in four years.

“The fall in bonds was the most important trigger for the gold recovery yesterday, so the positive momentum could be short-lived, as the medium-term trend in US bond yields remains positive due to rising interest rates,” Ipek said in a statement. Ozkardeskaya, analyst at Swissquote Bank.

“The Fed has declared war on inflation and will raise interest rates. Higher interest rates will have a direct positive impact on bond yields,” she said.

“Gold is at a crossroads testing resistance at the 200-day moving average of close to $ 1,837 an ounce, a level that coincides with the correction area ceiling built since mid-April.”

“If gold moves sharply above the 200-day moving average,” we could see the rally persevere in the $ 1,880-1,900 range. And the Russian gold supply shock could support that move, “he said. . “I still believe that gold will move downwards in the medium and long term based on the expectation of a rise in bond yields, as the Fed will not get rid of high inflation quickly.”

In this climate, the gold June delivery gained 90 cents to settle at $ 1,842.10 an ounce on Friday, as the S&P 500 entered the bear market as it slipped 1.8%, falling 20.7% from its all-time high. in January 2022.

During the week, gold strengthened by 1.7%, interrupting 4 consecutive 5-day losses, the largest negative series since the corresponding period ended on August 17, 2018, when it was in negative territory for six consecutive weeks, according to the Dow Jones Market Data.

The silver July delivery lost 23 cents, or 1.1%, on Friday, to reach $ 21,674 an ounce. The most active contract rose 3.3% per week, the largest increase since the 5-day period ended April 14, according to Dow Jones Market Data.

As for the other metals, o copper In July, it fell 0.2% to $ 4,275 a pound. The July delivery contract for platinum slipped 1.3% to close at $ 941.10 an ounce, while the palladium delivery in June fell 2% to $ 1,939.70 an ounce.