According to Analyst Haworth from USBWM, there is no support for the gold price; Basic metals and oil look better. According to the market strategist, the gold market faces a challenging environment, as rising real interest rates and a stronger US dollar will act as an important reverse wind for the rest of the year. Details Kriptokoin.com‘in.
Pessimistic table for gold price
Rob Haworth, a senior investment strategist at the US Bank Wealth Management, said in an interview with Kitco News, although gold continues to be an important component in a portfolio, he said more attention to stronger cyclic commodities such as basic metal and oil. He added that the supply restrictions and increasing demand in the current economic environment seem attractive.
Haworth added that he expects gold prices to fight while trying to change the federal reserve monetary policy and potentially reduce monthly bond purchase before the end of the year. The Gold Market tests an $ 1,750 per $ 1,750 per ounce, as investors continue to digest the last monetary policy meeting of the Federal Reserve. Although the FED does not announce its contraction plans, expectations are increasing that they will announce their plans in November and potentially implemented in December.
Gold and economic projections
At the same time, the latest economic projections show that the Central Bank committee has received an interest rate hike potential in December 2022. The Central Bank thinks that the rates will increase to 1 %by 2023. Haworth said, “Everyone is waiting to see higher interest rates and this will receive one more point from the investment demand for gold. There is currently no gold support,” he said. Although Haworth is not very optimistic about gold prices in the near term, there is still too much economic uncertainty to support existing prices. He pointed out that increasing COVID-19 cases during the summer constitute a soft patch in US economic activity. We can’t say how long this can take, he added. Howarth says:
We are currently in the purgatory. If COVID-19 cases continue to decrease, we can see a strong improvement. Consumers clearly continue to make virus -based elections. If we see another increase in infection, this means the continuation of this uncertainty…
However, Haworth said that even if it is not as strong as economic recovery expected, it would not be possible to remove the Federal Reserve’s tightening plans to tighten monetary policies. “There is enough space in economic growth to reduce interest rates, but perhaps not to raise interest rates.
Haworth said that the firm’s basic scenario is for the continuation of the cyclical recovery and the recovery assets to remain attractive for investors. Analysis, instead of gold, I think cyclical commodities are probably a better story at this point, ”he said. Haworth added that he sees more value on the self -capital side rather than raw commodities. He noted that even if there is little behind in commodities such as aluminum or copper, it still represents an important value for manufacturers.
