"Why the gold price struggles to stay above $2,000"

" \r\n \r\n \r\n \r\n \r\n \r\n Why the gold price struggles to stay above $2,000 \r\nGold tends to perform well during periods of elevated uncertainty about economies and financial systems \u2014 something the world has seen a lot of in recent times. Yet each time the metal rallied above $2,000 an ounce, it quickly falls back below that level. \r\n\r\nThis pattern, according to Joe Cavatoni from the World Gold Council, has a lot to do with the dynamics of the gold market where real-world demand for the metal is reduced as the metal\u2019s price reaches a certain level, and in this case, the $2,000\/oz threshold.\r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n\u201cThat $2,000 point, and those technicals, they start to impact some areas of demand for gold. We mentioned consumers, so jewelry in China and India, these are price-sensitive businesses and price-sensitive consumers,\u201d Cavatoni said on this week\u2019s\u00a0 What Goes Up \u00a0podcast (Bloomberg), which discusses the main themes influencing global markets.\r\n\r\n\u201cSo when you start seeing those types of price levels develop, that\u2019s when you see those types of consumers back away from buying \u2014 and investors aren\u2019t ready to step back in in the long-term. That\u2019s why you\u2019re seeing us peak out and hold off,\u201d the WGC strategist explained.\r\n\r\nSpeaking on the subdued period post the March banking crisis \u2014 where gold is holding at around the $1,850-$1,950 level but not breaking out \u2014 Cavatoni said \u201cit\u2019s simply because institutional investors have not come back to the table.\u201d\r\n\r\n\u201cThe rangebound pricing behaviour we\u2019re getting is being held up mainly by a lot of buying from central banks, which is a trend we\u2019re seeing for a long time,\u201d he added.\r\n\r\n\u201cSo what we need to see next is some sort of understanding by the investment community that the policies we\u2019re dealing are leading to a better outcome, and our expectation is that you\u2019ll see these investors come back to the table,\u201d Cavatoni said, referring to the monetary policy actions that would eventually reverse and propel gold prices higher.\r\n\r\n \r\n \r\n \r\n "

"Why the gold price struggles to stay above $2,000"

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