Although the gold price rose after probing below $1,800 on Friday, it closed the week with a loss. The yellow metal fell for the fourth week in a row as the dollar’s strength with more aggressive US interest rates on the horizon dampened appetite for bullion. We have compiled market comments and price forecasts from analysts and economists for our readers.
David Meger: Pressure on gold price increases
As we have covered in cryptokoin.com news, US Federal Reserve Chairman Jerome Powell said on Thursday. In a statement, he said the battle to control inflation “will involve some pain” as the impact of higher interest rates is being felt. David Meger, director of metals trading at High Ridge Futures, comments:
The pressure on the gold price is increasing as the Fed is committed to raising interest rates quickly and, in addition, the extremely strong dollar. What the market will watch closely for the future will be inflation figures.
Jim Wycoff: This is negative for safe-haven metals
Dollar index hovering close to 20-year high, rising It earned its sixth consecutive weekly earnings. Although viewed as a hedge against inflation, bullion is non-interest bearing and is sensitive to rising US short-term interest rates and bond yields. In a note, Kitco senior analyst Jim Wycoff highlights:
A rebound in global equity markets is also downside for safe-haven metals, amid less risk aversion to end the trading week.
Craig Parry: Gold price should stand out across all industries
On the other hand, Inventa Capital co-founder and partner Craig Parry said metals are doing relatively well during this steep market downturn. says it is. After this week’s sales, Craig Parry comments:
It’s been a tough, tough week. Full capitulation mode by many names, probably unfair because you’ve seen metal prices hold up relatively well there. There should be a striking gold price in all sectors. We are back where we were at the beginning of the year. It is quickly becoming clear that gold continues to be a safe haven. People will come back to this industry to a large extent.
“Dollar strength reversal will be positive for gold”
Aggressive rate hikes and a stronger US dollar in the short term headwinds for gold However, economists at ANZ Bank expect the yellow metal to be supported by rising inflation and global growth concerns. Analysts interpret the current situation as follows:
Investors flocked to the US dollar as expectations for a European economic slowdown rose and the US began a cycle of aggressive rate hikes. While the US dollar looks strong in the short term, any top mark could stabilize gold prices. As the risk of more aggressive monetary tightening increases, gold’s hedge against inflation declines. However, the darkening economic backdrop and subsequent sales in the equity markets should provide some support.
Tunç Şatıroğlu: Gold and dollar declines are a buying opportunity
Evaluating Dollar/TL rate, ounce and gram gold prices on his personal Youtube channel Economist and technical analyst Tunç Şatıroğlu states that the dams in front of the exchange rate, which is tried to be kept under control, are being demolished one by one, and says that this will be a buying opportunity in case of an intervention. Tunç Şatıroğlu expresses his views as follows:
They were trying to build a dam at 14.86 dollars/TL. There was a breach. They were able to fill that gap. But the dollar rose again. Now they may want to lower it again. However, the trend is clear, now it’s futile. They can’t be trusted. 40 of the dollar is out. Do not borrow in dollars. If it interferes, it is a buying opportunity.
Gram gold prices are determined by the Dollar/TL exchange rate besides the ounce prices. In other words, gram gold investors are also dollar investors. Considering that a significant part of the savings are made with gram gold in Turkey’s conditions, “What should gram investors do?” question comes to mind. Stating that it is not the time to sell gold, Tunç Şatıroğlu makes the following statement:
On the gram gold side, decreases may be limited. Any price below 1.900 per ounce is a purchase.
