Gold: MUFG – Technical support assessed amid ongoing liquidation

Gold and Precious Metals Face Downward Pressure

According to MUFG’s Senior Currency Analyst Lee Hardman, gold and other precious metals are experiencing notable declines, even as global geopolitical tensions remain elevated. Since the onset of the Middle East crisis, gold prices have dropped by nearly 25%, now nearing the critical 200-day moving average support level around USD 4,090 per ounce.

Metals Approach Crucial Support Levels

Hardman highlights that both gold and silver have seen significant downward corrections, with prices moving sharply lower in recent sessions.

• Gold has surrendered almost a quarter of its value since the Middle East conflict erupted, drawing closer to its technical support near USD 4,090 per ounce.
• Heavy position unwinding and a shift toward more aggressive central bank rate expectations have contributed to the ongoing sell-off in precious metals.
• Despite increased geopolitical uncertainty and concerns about stagflation, gold has yet to see any substantial safe-haven inflows.

This report was produced with the assistance of artificial intelligence and subsequently reviewed by an editor.