Gold prices finished modestly higher on Thursday and continued on Friday, after the dollar continued its recent decline and struggled to find direction as investors returned to equities.
George Milling-Stanley: Gold price has room to climb further
According to State Street Global Advisors chief gold strategist George Milling-Stanley, who evaluated the developments in the market. interest rates are hurting gold even if it doesn’t fit the big, historical picture.
However, George Milling-Stanley said, given the sharp inflationary pressures from Russia’s war in Ukraine and higher labor costs in the US, which he expects to keep the cost of living high in the 5% range over the year. he thinks there is room for gold to climb further.
Stating that this is an opportunity for those who want to invest in gold and gold, the strategist said that precious metals will perform better when inflation stays above 5% for at least one quarter. He adds that he tends to
The dollar may begin to weaken
According to Steven Barrow, traders meanwhile, in particular, are seeing the 10-year Treasury rate rise 2.76% from its high of 3.12% in early May. They’re weighing whether Treasury yields could hit a peak anytime soon.
Long seen as a safe-haven asset during times of market volatility, gold has been moving more in line with “risky” assets like stocks in recent months and weeks, which has long bothered some analysts.
As you can follow from the news of Cryptokoin.com , the dollar reached its strongest level in decades about two weeks ago. But the Dollar Index (DXY), which shows the dollar’s strength against its main rivals, has dropped 1.2% over the past week through Thursday. Some strategists, including Standard Bank’s head of G-10 strategy, Steven Barrow, predict the dollar may begin to weaken.
“Few investors are willing to buy gold without believing the Fed can blink”
According to TD Securities economists’ report, A hawkish Federal Reserve (Fed) is poised to weigh in on gold with little demand. According to economists, quantitative tightening (QT) drains liquidity fast, while the Fed slows growth and everyone knows it. Economists note that this position positions analytics as a critical source of information for price action in the coming months. Economists review:
Trend followers have completed their buying program and are still long. This reduces investment demand for gold in the macro narrative, indicating additional downside on the horizon as the momentum continues to the downside. There are very few participants left to buy gold without believing the Fed can blink, which still leaves a liquidation gap in gold.
“Yellow metal does not see any momentum from financial investors”
According to economists at Commerzbank, since positive risk appetite dominates financial markets, Gold is trending sideways after losing its shine for investors. In addition, economists note that the slightly weaker US dollar offers almost no support. Economists read the developments in the market as follows:
In the current market environment, where the risk appetite among market participants has increased once again, gold does not see much demand. The slightly weaker US dollar offers almost no support this morning. Over the past two days, gold ETFs have seen exits again, meaning gold isn’t seeing any momentum from financial investors.
