When the price of the gold price was found to find a bottom around $ 1,700, the Federal Reserve President Jerome Powell decided to throw a shovel into the market and said they started digging to investors. Speaking at Wall Street Journal Jobs Summit, Jerome Powell said he wasn’t very interested in sales in the bond market, following the gold prices late on Thursday below $ 1,700.
Jerome Powell said he would look for more than the increase in bond returns to adjust the monetary policy of the Central Bank. The FED President, while attracting the attention of bond returns, the monetary policy is not based on a single number, he said. After these developments, the gold market shifted down. Master names are now trying to determine the direction of the trend for the gold price.
Analysts: We can see lower prices of $ 1,600 for gold price.
“I am interested in irregularity in the financial market or unwanted tightening in the financial market. This is not about a certain price. he said. Jerome Powell’s comments increased bond returns to the highest level of one year above 1.6 %. Towards the end of the week, the returns of 10 -year bonds still remain at high levels of more than 1.5 %.
The question asked by many investors and market players is at which point on the bond bond returns of the Federal Reserve, which rises more than 200 %than the lowest level in August. The market’s response from Powell is not “not soon”. According to the analyst, bond returns will continue to rise uncontrollably storm clouds in the gold market will continue to form. According to some analysts, if the price of gold cannot support $ 1,680, we can potentially see lower prices of $ 1,600.
World Golden Council Analysts commented on the market
Blue Line Futures Chief Market Strategist Phillip Street, said in a statement to Kitco News on Friday, the highest value in the returns will be at the bottom for gold, ”he said. While there are open negative emotions in the market in the short term, many investors are not ready to give up Gold in the long run. Although most people are focused on increasing potential for a strong economic recovery, the threat of inflation continues to grow.
Gold’s price movement is lifeless lately. However, according to analysts, the wider commodity market is burning and everything from cereals to timber and main metals sees unprecedented rally. For many analysts, these high prices can lead to an inflation wave that can increase gold prices. The World Golden Council analysts said in a report published in the beginning of this week:
Historically, gold tended to perform under a period of reflation in the first six months. However, it usually performed better in the next six to 36 months.
Todd Horwitz: We are going to a real disaster
Todd Horwitz from Bubbatrading.com said that nominal returns have increased in inflation fears, but there are deep, recent structural problems under the hopes of healing of the economy. Todd Horwitz said that most of the small businesses closed will not return to the market. Todd Horwitz adds the following to the subject:
What we really have to do is go to stagflation with inflation. Because we do not create a business, we do not grow, the new administration has already given OPEC again and took it back. A share of our oil manufacturers by returning to China… Everything that the government does harm and you are looking at the Federal Reserve or the central bank around the world… They continue to print the dollar, but this does not create employment… We go to a real disaster…
Gold and Bitcoin supporters against the scratch …
While a lot in the financial markets lasts, the ongoing debate between gold and crypto currencies seems like a side show that ignores the larger event. This week, billionaire investor Mark Cuban discussed with Bitcoin critic on Twitter with Peter Schiff. Mark Cuban “Gold is dead Peter. Go ahead.” he said. However, Peter Schiff came out hard to Mark Cuban, saying that Bitcoin was “waste of energy”.