Gold breaking the levels of 50,000
Gold has surpassed its physiological level of 50,000 on the MCX where this sell-off may extend towards the level of 49,000. Despite the fact that the dollar index has fallen, gold prices have not risen much.
On the COMEX, gold has also surpassed the $1700 barrier, and is presently trading around its earlier support level of $1675, from which a previous surge to the level of $2080, which was the highest level of the year, was recorded.
Recent dollar strength and gold weakness may be directly linked to the Federal Reserve’s aggressive monetary policy, which has seen interest rates climb at every FOMC meeting since March of this year. This corresponds to the Federal Reserve’s first interest rate increase, which happened in March as well.
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