Is Gold a good buy in November 2022?

By:

Stanko Iliev

Stanko is a Financial Analyst for Invezz covering stocks, cryptocurrencies, and worldwide indices. He has significant experience trading forex,… read more.

on Oct 23, 2023

• Gold remains under pressure
• The important support level stands at $1600
• The appreciation of the US dollar negatively influences Gold

Gold price has weakened from $1879 to $1614 since June 13, 2022, and the current price stands at $1656. Gold is considered a safe-haven asset, but it is important to say that a safe-haven demand driven by concerns over Ukraine is countered by the strength of the US dollar.

The demand for the dollar continues to grow as the Federal Reserve continues to hike rates in an effort to stem soaring inflation. Higher US interest rates increase the opportunity cost of holding the zero-yielding metal, and the upside potential for Gold remains limited for now.

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Inflation numbers in the US suggest that the Fed needs to be more aggressive and Fed Chair Jerome Powell said that US central bank officials are strongly resolved to bring down inflation from the highest levels in four decades and will keep at it until the job is done.