Gold is a precious metal that has been used as a store of value and a medium of exchange for centuries. It is considered a safe-haven asset and is often used as a hedge against inflation and economic uncertainty. Here are some key points to consider when analyzing gold:
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Supply and demand:
The supply of gold is limited, and new discoveries are becoming increasingly rare. At the same time, the demand for gold is driven by jewelry, investment, and central bank reserves. These factors can affect the price of gold.
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Interest rates:
Gold prices are inversely related to interest rates. When interest rates are low, gold becomes more attractive as an investment because it does not provide a yield. When interest rates are high, investors may prefer bonds and other investments that provide a yield.
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Inflation:
Gold is often seen as a hedge against inflation. When the cost of living increases, the value of gold may increase as well.
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Currency fluctuations:
Gold is priced in US dollars, so changes in the value of the dollar can affect the price of gold. When the dollar weakens, the price of gold may rise.
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Geopolitical events:
Gold is often seen as a safe-haven asset during times of geopolitical uncertainty, such as war or political instability. These events can increase demand for gold and push up prices.
In summary, gold is a valuable asset that can be used to diversify a portfolio and hedge against economic uncertainty. However, like any investment, gold carries risks, and investors should carefully consider their investment objectives and risk tolerance before investing in gold. Today’s overview as follows-
- 5 negative daily performances in succession.
- Selling posted in Asia.
- Bespoke support is located at 1800.
- Bespoke support is located at 1795.
- The 261.8% Fibonacci extension is located at 1801 from 1847 to 1829.
Recommendations: Buy/Buy Limit @ 1800/1798 area Take Profit:1822
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Gold Intraday Analysis on Dated 03-03-2023
