The gold price fell on Thursday as the dollar rose. Some investors preferred cash after the minutes of the US Federal Reserve’s (Fed) policy meeting showed that the central bank would remain on the course of raising interest rates.
Brian Lan: Gold price could drop as low as $1,820
Spot gold price as a stronger dollar hurts demand for dollar-priced bullion for buyers holding other currencies It fell 0.5% to $1,844.15, down 0.5%. U.S. gold futures slid 0.2% to $1,843.30.
Dealer GoldSilver Central’s chief executive Brian Lan says that the Fed’s commitment to raise interest rates has had some impact on gold, with some profits being taken as the news deepens and prices could fall as low as $1,820.
Brian Lan predicts that gold will shine in the long run
Kriptokoin.com , which we also include in our news. Gold trimmed some dollar-strength driven losses Wednesday after notes from the Fed’s May meeting showed the Federal Reserve won’t be more aggressive and will raise interest rates by 50 basis points in June and July to fight inflation.
However, Brian Lan predicts that over the long term, investors who know that a recession is approaching are looking at something high-value that can shield them from the tide during this period and gold will shine.
Michael McCarthy: This is positive for the gold price
Further rise in short-term US interest rates and bond yields, nothing yields increases the opportunity cost of holding bullion. However, gold is seen as a safe asset during financial crises.
Australia, Tiger Brokers chief strategy officer Michael McCarthy says the Fed’s two more half-point gains and then waiting to see its economic impact have been positive for gold, so gold’s response has been a quiet disappointment. .
Also, the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, announced that its holdings rose 0.2% to 1,069.81 tons on Wednesday, from 1,068.07 tons the previous day.
