The price of gold could move on Monday after a terrorist attack in Russia.
Gold – Daily Chart
Gold prices found resistance recently around the $2,200 level but may move higher again on geopolitical tension. $2,067 is the 2023 high.
Gold is set to be a focus this week after a terror attack in Russia. At the same time, there was also a rescue effort after a gold mine collapsed. A claim of responsibility by the Islamic State for an attack on a Russian concert has been said to be plausible by Western security. However, the timing is curious, and Russia is pointing the finger at Ukraine.
One expert said, however, that it was unusual for the attackers to escape.
Assailants had formed and executed an escape plan instead of pursuing their rampage to the point of being gunned down. Russia has not specifically said who it believes was behind the shooting but has stated that there was involvement from Ukraine.
The attack could escalate tensions between Russia and Ukraine, and gold could be a beneficiary.
Another event was a collapsed gold mine in Russia, where 13 workers are still trapped. That could lead to some mild supply fears, but gold could look to retake the $2,000 level. The Federal Reserve stayed on track for interest rate cuts last week, which should happen by summer.
On a retail level, there is some worry about a rising price of gold demand. Jewellery stores in India were said to be quiet last week after a record price rally hurt consumers’ appetite and forced dealers to offer more significant discounts; however, top consumers in China continued to see steady demand. Domestic gold prices in India last week, the world’s second-largest gold consumer, also hit an all-time high of 66,943 rupees per 10 grams.
“Retail demand is nearly non-existent. Buyers have become very discerning and prefer to make purchases only when prices come down,” a Mumbai jeweller told Reuters.
