Forums » News and Announcements
Future Gold Market May Be Supported Despite of Volatility
-
Gold prices slumped to $1,910.19 in yesterdays trading after an initial gain of $40, while U.S. Treasury yields jumped to 0.745% in the wake of the changes made by the FED to its framework for monetary policy.
The FED Chair Jerome Powell proposed a new strategy to shoot the 2% inflation objective with the duration of low rate and the level of inflation both in uncertainty.To get more news about WikiFX, you can visit wikifx official website.
Investors believe that gold purchases for inflation hedge will not be strong enough if the FED is devoid of a strategy other than keeping interest rates low because such policy changes are too little to change anything now.
According to the report of Wells Fargo Bank, the rally in the greenback reflects the anticipation of forex pricing on the FED's changes, thus more factors are required for another decline in the dollar.
TD Securities stated that gold markets may take a consolidation for several months, in which sharp correction may occur along the descent while the upside may be constrained. More drops are foreseeable unless there is a strong rebound in gold prices this week.
The Economist Intelligence Unit reported that:“The support for gold prices is expected to maintain strong on the back of central banks who have to give such favor in order to avoid a setback amid the long and slow economic recovery from the COVID-19 crisis, which has been reflected in Powells speech.”
Credit Suisse pointed out that, gold prices would head to the resistance level of $2,075/oz, followed by $2,175/oz, $2,300/oz and $2,417/oz successively, while such level in the long term would stand at $2,700/oz.
All the above is provided by WikiFX, a platform world-renowned for foreign exchange information. For details, please download the WikiFX App: