Gold in the market is still in the hands of the bears

The current price of gold in the global market is at $1,896 per ounce, showing a decrease of more than $11 per ounce compared to the previous trading session.

Gold has been experiencing consecutive declines as the market anticipates the Federal Reserve to ease its monetary policy. The strengthening of the US dollar and bond yields in recent sessions has led investors to increasingly abandon gold and shift towards speculating on other profitable assets.

The forecast for gold prices suggests further significant decreases if there are no new supporting factors in the market.

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The price of gold has become more costly for buyers who hold currencies other than the dollar, as indicated by a 0.2% increase in the dollar index.

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The strong tightening of monetary policy by the Federal Reserve poses the biggest challenge for gold and precious metals, with an 86.5% chance that the Fed will keep interest rates within a range of 5.25% to 5.50%.

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Daniel Hynes, senior commodity strategist at ANZ, said that while he cannot rule out a drop below $1,900 an ounce, he sees signs of solid support in the market.

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Currently, the benchmark interest rate in the US is in the range of 5.25 - 5.5%, the highest level in the past 22 years.