Yesterday, gold experienced strong trading at the level of 2010 USD, but it was unable to sustain its upward momentum and quickly returned to the lower range of 1979 - 1980 in today's trading session.
It is evident that gold is likely to lose its appeal as a safe haven as the world gradually adapts to developments in the Middle East. In fact, concerns about political instability cannot help gold maintain its level at 2,000 USD/ounce when the market once again reverts to the Federal Reserve's monetary policy, which supports the strength of the US dollar and bond yields.
While this precious metal is supported by political instability, it is weighed down by the hawkish monetary policy stance of the Fed. This could potentially lead to a decline in gold towards the support level around 1945 - 1950 USD.
It is evident that gold is likely to lose its appeal as a safe haven as the world gradually adapts to developments in the Middle East. In fact, concerns about political instability cannot help gold maintain its level at 2,000 USD/ounce when the market once again reverts to the Federal Reserve's monetary policy, which supports the strength of the US dollar and bond yields.
While this precious metal is supported by political instability, it is weighed down by the hawkish monetary policy stance of the Fed. This could potentially lead to a decline in gold towards the support level around 1945 - 1950 USD.
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