Gold prices saw the highest level of four weeks on Tuesday. While the US dollar and treasury interest rates decreased, concerns of global economic slowdown increased. In this environment, with increasing the demand for the safe port metal, Gold carried the winning series to the fifth session.
Edward Meir: Gold can rise to the middle of $ 1,800
Spot Gold has seen $ 1,787,91, the highest level since July 5th. The yellow metal, which then declined, was traded for $ 1,775 in the press time. US gold futures increased by 0.17 % to $ 1,790.6.
Kriptokoin.comAs you have followed, the dollar fell to the lowest level of a month in the face of its competitors. This made the gold in dollars cheaper for other exchange owners. Benchmark USA 10 -year Treasury interest rates fell to the lowest level of four months. This development also reduced the opportunity cost of keeping interest -free gold. Ed & F Man Capital Markets Analyst Edward Meir makes the following assessment:
It is possible for gold to rise slightly to the middle of $ 1,800. Because most of the macro figures in the United States began to look worse. So the dollar will continue to weaken during August. If things continue to deteriorate, the Fed is possible that perhaps at some point will stop raising interest rates to allow the economy to heal. More importantly, we can start to see some kind of incentive expenditures in Europe and China.
Daniel Pavilonis: This is a purchase signal!
Recently weak US economic data pointed out a slowdown. Therefore, Fed’s monetary policy is likely to be less aggressive in tightening plans. Yellow metal tends to gain value with lower interest expectations. The yellow metal fell to the lowest level of more than a year on July 21st. However, he has earned about $ 100 since then.
Meanwhile, Nancy Pelosi, the President of the US House of Representatives, goes to visit Taiwan despite objections from China. This is likely to trigger a possible climb in the Chinese-US voltage. Therefore, investors also follow these developments. RJO Futures Transactions Senior Market Strategist Daniel Pavilonis makes the following comment:
Russia has a more space for the upward movement due to important problems with Ukraine and China and the dollar faces with some resistance. However, interest rates are still the biggest factor for gold. In the meantime, even if the Fed does not finish the interest rate hike, he is taking a break. This is a purchase signal.
Han Tan: Golden Bulls are waiting for a new rise
The FED increased interest rates on Wednesday by 75 basis points last week in line with expectations. However, President Jerome Powell’s comments increased hopes for a slower walking path. This hit the dollar. Exinity’s chief market analyst Han says:
Golden Bulls are waiting to make sure that the expectations of a less aggressive Fed actually root and see if the shores are open for a new rise.
Rupert Rowling: A new drop is possible under this
On the other hand, strategists warn that the last rally stems from the perception that the Federal Reserve plans to slow down interest rates. Kinesis Money’s precious metals strategist Rupert Rowling says that investors can reversed if the FED is already trying to reduce the rate of interest rate hike in response to the slowing US economy. In this context, the analyst underlines the following:
Most of the recent rise of markets where gold also benefits are based on the assumption that future FED interest rate hikes will be smaller. If it proves that this is a wrong dawn, a new decline is possible under it.
