The price of gold has been in a continued decline since February 2, falling from a high of $1,959 per ounce to $1,818, while Thursday recorded an opening price of $1,824.29.

PP Link Securities business manager Long Samnang says that with the US Federal Reserve expected to continue raising interest rates as it fights inflation, the trend was likely remain in a downtrend.

Ambar Warrick at on Wednesday reported: “Gold prices hovered slightly above a six-week low on Wednesday with markets remaining cautious ahead of ... the Federal Reserve’s February meeting, while some stronger-than-expected US economic data further supported the dollar.

“Bullion prices were trading in a tight range for the week amid renewed concerns over more hawkish moves by the Fed, especially after stronger-than-expected inflation readings for January.

“Rising interest rates bode poorly for non-yielding assets such as gold and other precious metals, given that they drive up the dollar and Treasury yields, and increase the opportunity cost of holding gold.”

Reuters’ Laura Matthews said positive US economic indicators could give the Fed cause to keep raising interest rates.

“Business activity in the US in February unexpectedly rebounded to an eight-month high, increasing to 50.2 from a final reading of 46.8 in January, according to a survey. A PMI reading above 50 indicates expansion, while a reading below that signals contraction.

“It follows recent robust data on retail sales, the labour market and manufacturing production, suggesting solid momentum in the economy at the start of the year.

“US PMIs also read stronger than expected for February, data showed on Tuesday. Any signs of resilience in the US economy give the Fed more space to keep hiking rates, which the bank has signalled that it intends to do in the near-term,” she said.

Based on technical analysis, the four-hour and one-week charts indicate that the price trend has been in a continued decline, with the weekly price moving between $1,870 to $1,788 per ounce.

For this week’s trading recommendation, Samnang suggests traders wait and sell at $1,860 per ounce, setting the take-profit function at $1,825 per ounce and the stop-loss at $1,875.