Gold prices are advancing at $1,860 and the yellow metal is watching a retest of two-week highs of $1,870. But in the view of economists at TD Securities, it may be prudent to rally sell for now.
“It may be too early to start bullish on the yellow metal”
At the time of writing, spot gold prices were at $1,858.27, up 0.28% according to TradingView data, at the time of writing. US gold futures rose 0.22% to $1,861.4. According to economists at
TD Securities, higher wages and saving savings help keep spending high, which the Federal Reserve has little effect on the supply side to help contain inflation. shows that aggressive rate hikes are still possible. Based on this situation, economists make the following assessment:
Therefore, it may be too early to start bullish on gold.
“In this case, gold prices can easily go below these levels”
Kriptokoin.com The Core Personal Consumption Spending Index, the Federal Reserve’s preferred inflation indicator, dropped to 4.9% on Friday. The index in question was announced as 5.2% in March. A visible decline may cause some softening in the Fed’s hawkish stance. As it is known, gold prices are significantly affected by the US short-term interest rates, and the Fed’s stance on interest rate hikes is followed closely by investors. According to
TD Securities economists, any sign that inflation will remain stubbornly high given that the risk in positioning still slopes towards the end of long positions, or as seen today, due to high wages and savings spending. With data pointing to a stable economy, Fed Funds forecasts could easily return to the highs seen in early May or even higher. As a result, economists forecast gold prices:
This, together with modest liquidity that could drop further with quantitative tightening (QT), volatility and repositioning led gold prices to easily reach $1,840 and then $1,800. It can force it to fall just below it.
