Gold prices closed higher Friday as investors absorbed fresh data showing stronger-than-expected US jobs data. However, the yellow metal failed to recover from a third consecutive week’s decline.
Robert Minter: We expect more investment demand from gold
“We expect more investment demand from gold this year,” says Robert Minter, director of investment strategy at Abrdn ETF. As central bankers work to cool down inflation, the strategist points to markets that are having trouble parsing out what the new interest rate regime looks like:
Obviously, there will be higher interest rates. Obviously, there will be higher inflation. The question is, are you looking at dramatically higher interest rates?
“NFP report does not change the Fed’s plan”
Doug Duncan, chief economist at Fannie Mae, employment “While the wage increase is a clear sign that firms are willing to hire, it could worsen the inflationary pressures that already exist in the economy,” he comments. The Economist says:
Overall, we believe this report will not change the Federal Reserve’s plan to continue raising the policy rate several times over the coming months.
“Gold prices struggling in a rising interest rate environment”
A strong dollar and higher Treasury yields could blunt demand for gold and other non-yielding assets. In addition to the week’s Fed rate hike, the Bank of England has raised interest rates for the fourth time. The European Central Bank is also expected to raise interest rates in July.
The gloomy position of the Bank of England contrasts with the Fed’s position that it can keep a recession at bay. Rupert Rowling, market analyst at Kinesis Money, has the following predictions for gold prices:
Gold is struggling to gain traction in this environment of rising interest rates and now looks set to continue below $1,900 for a while. While the bullish support of the ongoing war in Ukraine will limit gold’s decline, the downward push by central banks to make non-yielding assets such as gold less attractive right now outweighs this situation.
“The sharp increase in bond yields keeps gold under pressure”
Kriptokoin.com As we have given, gold’s trip above the $1,900 level was short-lived. However, Commerzbank economists say the jobs report is unlikely to affect the Gold Price, as the US NFP has not deviated significantly from expectations.
Gold posted its third consecutive weekly loss. Bond yields are probably the main factor affecting the price of gold. As market-based inflation expectations did not change, real interest rates also increased significantly. This made gold less attractive as an alternative investment.
Hatice Kolçak: Gram gold prices are suitable for purchase
Economist Hatice Kolçak, who shared her views on gold prices on the Youtube channel, is currently gram gold prices. says that gold prices are suitable for a buying opportunity. The economist, who said, “As inflation will be permanent in the long run, ounce gold prices will recover”, he predicts that there will be an increase after a limited decrease. From this point of view, Hatice Kolçak, who also touched upon the Dollar/TL exchange rate, which is important for gram gold prices, makes the following statement:
Gold will work its way out one way or another. The dollar will not fall permanently with an external money inflow. The dollar is in place right now. So I don’t expect a drop. I wonder how long we can keep the dollar at this level. As I always say for gram gold, in the long run, their current location is not bad.
