Although gold prices have rallied more than $100 from their recent lows, the market is struggling to break resistance just below $1,800 an ounce.
“Going forward, the upside for the gold price is likely to be restrained in the very short-term.
“Interestingly, despite weaker than expected economic readings more recently and the slump in consumer sentiment, the dollar has still managed to hold near four-month highs.
Metals Focus also noted that gold’s safe-haven allure has lost some of its luster, and the precious metal is competing against a significant momentum in equity markets.
“To a large extent, this suggests that investor sentiment is still only cautious.
However, it is not all doom and gloom in the precious metals market.
“If inflation does prove to be transitory in the coming months, rate hikes may not occur as early as some anticipate.