The gold price was quiet on Sunday despite some upheaval in the Middle East and beyond.
XAUUSD – Weekly Chart
Gold trades between the $2,483 level as support and resistance is ahead at the $2,792 highs.
The precious metal is quiet despite some political upheaval across the world. Syria’s government has fallen with President Bashar Al-Assad fleeing the country to Russia according to reports. Other reports say that the country is now under the control of Al Qaeda.
The political turmoil was not only in the Middle East with France’s government losing a confidence vote and stepping down after only a few months. South Korea also had its problems with the President facing a similar vote of no confidence. The South Korean situation worsened on Sunday after Yoon Suk Yeol was set to face charges of treason.
Gold weakened last week after US employment strength reduced any panic for swift interest rate cuts from the Federal Reserve.
The probability of a Federal Reserve interest rate cut in December currently stands at around 70%, with expectations of a 25-basis-point reduction. Interest rate cuts will benefit gold, as lower interest rates decrease the opportunity cost of holding non-yielding assets like gold and bitcoin.
On the demand side, despite a decline in interest in jewellery, China’s investment in gold is still strong, according to World Bank data. Central banks have been a key supporter of the precious metal, while exchange traded funds have also seen strong investment flows.