Guiding Predictions for Gold Price from 4 Analysts!
May 31, 202271
The price of gold fell on Tuesday as US bond yields and the dollar strengthened, and gold bullion headed for a second straight month of losses for the first time since March 2021.
Jeffrey Halley: Gold’s downside correction may continue in June
Gold price was around $1,900 at the beginning of the month. As you can follow from Cryptokoin.com news, on May 16, the yellow metal fell to $1.786.60 as the dollar rose to the highest levels of twenty years. However, the nugget has recovered somewhat since then. Jeffrey Halley, senior analyst at OANDA, comments:
Gold’s performance in May was disappointing overall, showing sudden weakness at the first sign of dollar strength, while significant USD weakness or lower US bond yields failed to make gains. This is a warning of more weakness ahead if both reverse. Gold’s downside correction may continue in June unless there is a sharp increase in tensions in Eastern Europe.
Stephen Innes: Gold price performing much better than expected
Stephen Innes, managing partner of SPI Asset Management, said: He notes that gold has performed much better than expected at the start of the Federal Reserve rate hike cycle, as it continues to price recession risks.
Higher short-term US interest rates increase the opportunity cost of holding bullion, but gold is also seen as a safe haven during economic crises such as a recession.
Daniel Briesemann: Gold not getting any momentum from financial investors
Minutes of the Federal Reserve’s meeting in early May, halfway through the summer to fight inflation It strengthened its expectations for a one-point rate hike, but said it would remain flexible to reassess the economy from now on. Commerzbank research analyst Daniel Briesemann says:
The minutes have revealed little new, and gold’s sideways movement this week against more solid gains in other assets shows that demand is currently lacking. The past two days have seen rebounds from gold ETFs, which means gold isn’t getting any momentum from financial investors.
Ipek Ozkardeskaya: Momentum is declining for gold price
Swissquote senior analyst İpek Özkardeskaya interprets the current state of the gold price as follows:
Gold continues to price above the 200 DMA [daily moving average] ($1,842). But upside momentum is waning as increased risk appetite shifts capital to riskier, better-returning assets.
