The gold price is pushing for third straight day of gains today, bouncing off its recent yearly low, but some say the pressure of a Trump presidency and expectations of further hikes from the US Federal reserve may soon push the price down again.
Gold is now down around $200 since Donald Trump won the US presidential election catching most investors off guard as most of the market had predicted a significant jump in the gold price in the event of a Trump victory with some predicting a price as high as $3,000.
The US dollar has also benefited from Trump and is significantly higher against most major currencies including the Euro and British pound since the election.
The Greenback was also boosted by recent comments from the US Federal Reserve where they noted that they expect to lift interest rates more than expected next year.
Higher interest rates in the US is seen as bullish for the US dollar and bearish for gold as it is not an interest bearing asset and is only profitable on capital gains,
Naeem Aslam, chief market analyst at ThinkMarkets noted that this is a critical time for gold and some very important support and resistance levels in the next month will choose the direction of the precious metal,
"In the short term, we are focused towards support at $1,100 and a break of this will be very bearish for the metal. As for the upside, we really need to break the level of $1,170 and $1,200," he said