Gold Price News: Significant decline to 2,586 USD – Markets under pressure

The gold price fell to USD 2,586 per troy ounce today, down from USD 2,646 the previous day. This downward movement reflects a combination of macroeconomic factors and a growing risk aversion among investors. Despite ongoing geopolitical tensions, such as the assassination of Russian General Igor Kirillov, and political uncertainties in the US, demand for gold as a safe investment remains limited.

In the hush money trial against US President-elect Donald Trump, the judge in charge has rejected a request to overturn his conviction. Trump was found guilty in May 2024 of falsifying business records related to hush money payments. The verdict stands because the presidential immunity granted by the Supreme Court does not apply in this case. Trump will nevertheless take office for his second term as US President on January 20, 2025.

After Olaf Scholz's lost vote of confidence, the federal election campaign officially begins. CDU/CSU, SPD and the Greens will present their election programs for the new elections on February 23, 2025 today. Federal President Frank-Walter Steinmeier has signaled the dissolution of the Bundestag, clearing the way for early new elections. The political debates will focus on the economy, social justice and climate policy.

A purported statement by the ousted Syrian ruler Bashar al-Assad is attracting attention. In a message on Telegram, Assad claims that he only left Syria under pressure from Russia. Accordingly, he left the country after drone attacks on the Russian airbase Hmeimim. Assad describes the new rulers in Syria as “terrorist” and criticizes the end of Assad's rule.

The Ukrainian secret service SBU has confirmed the killing of Russian General Igor Kirillov as a targeted operation. Kirillov, who was allegedly responsible for the use of chemical weapons, was killed by a bomb hidden in an e-scooter. Russia has condemned the attack as an act of terrorism, while Ukraine has described the operation as a justified act in the context of the conflict.

The price of gold fell significantly to USD 2,586 per troy ounce in today's trading, after trading at USD 2,646 the previous day. The downward movement reflects the ongoing uncertainties in the global markets, coupled with capital outflows into other asset classes.

From a technical perspective, the gold price is in a crucial phase. The support at USD 2,580 is currently being tested. A break below this level could push the price further towards USD 2,550, which would underline the weakness in the market. On the upside, the USD 2,620 zone represents the next hurdle. Only a sustained rise above this level could trigger a recovery.

Technical indicators are showing mixed signals: the Relative Strength Index (RSI) is at 48, signaling a neutral to slightly oversold market. The Moving Average Convergence Divergence (MACD) remains below the zero line, indicating continued downside momentum. Trading volume remains at average levels, suggesting a wait-and-see attitude among investors.

Short-term market developments are heavily influenced by geopolitical tensions and the continued strength of the US dollar. Investors should keep a close eye on the USD 2,580 mark, as a breach of this level could open up new downside risks.

Gold remains under pressure at USD 2,586 per troy ounce, while geopolitical tensions and capital outflows into alternative asset classes are shaping market sentiment. The assassination of Russian General Igor Kirillov in Moscow has further heightened tensions between Russia and Ukraine. The escalation could increase demand for safe-haven assets such as gold in the coming days.

Political uncertainty in the US remains a significant factor for the markets, which is further exacerbated by the ongoing hush money trial against Donald Trump. Trump's imminent inauguration on January 20, 2025 could have a strong impact on geopolitical dynamics and investors' risk perceptions. Investors are therefore holding back for the time being, which is putting additional pressure on the gold price.

On the other hand, the strength of the US dollar continues to play a crucial role. The robust labor market and the relative stability of the US economy support the dollar, making the precious metal more expensive for international buyers. At the same time, capital flows into higher-yielding asset classes such as technology stocks or cryptocurrencies remain an obstacle to a sustained recovery in the gold price.

In the short term, the gold market remains fragile. A sustained break below the USD 2,580 mark could trigger further selling pressure, while a recovery above USD 2,620 would send a positive signal to the markets. In the medium to long term, however, gold remains a key component of risk-hedging portfolios given the uncertainties in the geopolitical and economic landscape.