A strong dollar and upcoming interest rate hikes reduce the appetite for inefficient yellow metal. With the effect of this, the price of gold on Friday, psychological support of $ 1,800 dangled gold. However, then he recovered and closed the day on a plus.
“The biggest print element for the dollar gold price”
Spot gold price, Friday, first with a harsh break up to $ 1,785 fell. However, he returned over $ 1,800 with the subsequent purchases. Dear metal, an increase of 0.2 %daily, closed the week at the level of $ 1,810. US gold futures decreased by 0.32 %to $ 1,801.5. TIAA Bank World Markets President Chris Gaffney makes the following comment:
The dollar is the biggest factor that suppresses gold. In the larger picture, there are rising interest rates.
Chris Gaffney: Individual customers tighten their belts
Investors also seem to prefer the safety of the dollar among the increasing fears of stagnation on Friday. In addition, the gains of the currency also make gold more expensive for off-shore buyers. Chris Gaffney from TIAA, some US individual customers ‘growth expectations and general inflation by questioning’ bored ‘belts’ records.
Meanwhile, the euro zone inflation reached another record in June. This has strengthened the possibility of ECB’s rapid interest rate hikes from this month. The largest central banks of the Şahin monetary policy pushed the non -interest gold to the worst quarter for more than a year.
Basic Basic Import Tax Increase for Bottom Affects the demand immediately ”
Meanwhile Kriptokoin.comAs we have reported, India, the second largest ingredient consumer in the world, increased its basic import tax on gold from 7.5 %to 12.5 %in order to reduce the trade deficit.
Ajay Keda, Director of Keda Commodities in Mumbai, says that in the third quarter, it usually sees a strong physical acquisition among festivals, but it will immediately affect the demand. The physical gold sellers in India made great discounts this week because the demand remained weak and the tax increase further reduced the interest.
“While the price of gold is falling, buyers can come late to recover this time”
The commodities continue to weaken and are worried about stagnation markets. In this environment, several commodity analysts say that the technical appearance in the gold market shows that yellow metal will continue to slip.
Gold managed to get support from buyers in decreases below $ 1,800 in the last six months. “This time buyers can come to save later, Büyük says FXPRO Senior Market Analyst Alex Couptikevich. Analyst makes the following assessment:
The latest financial market dynamics show that the stagnation in the markets stems from the actions of the central banks.
Alex Kugünikevich: Gold demand is possible to decrease in the coming weeks
The data on Friday shows that the US economy slowed down in June. The ISM barometer of American factories fell to the lowest level of 53 %with a decrease of 3.1 points. Alex Kugalikevich makes the following comment:
Meanwhile, central banks are accelerating in the tightening of monetary policy. It also puts pressure on long -term inflation expectations. In such an environment, the demand for gold as insurance against inflation promises to decrease in the coming weeks.
