Gold slumped in international markets on Monday as the rising dollar weighed on demand for dollar-priced bullion and rising US Treasury yields put pressure on prices. At the time of writing, ounce gold is changing hands at $ 1,860, while the price of gram gold seems to be around 896 liras. So what levels can be seen in the upcoming period? ANZ Bank analysts explained. Here are the details…
ANZ Bank: Gold will be supported at $1,900
While the US Federal Reserve (FED) increases interest rates, the relentless strength of the US dollar puts pressure on gold. However, strategists at bank ANZ expect the yellow metal to remain resistant around $1,900 for the next six months. Analysts, who think that gold is well supported, use the following expressions:
With the US Federal Reserve’s increase in interest rates, investors’ appetite for gold is getting a little brighter. A stronger US dollar has emerged as another hurdle for precious metal prices recently. We see geopolitical risks and sustained inflation remain bearish and gold should be supported at $1,900 an ounce over the next six months.
Latest situation in the markets
As we have reported as Cryptokoin.com , precious metal prices, US Federal Reserve continued to come under pressure due to the hawkish outlook on politics. However, today’s session could be significant for precious metals prices, according to experts, as Russia threatens to declare war on NATO countries that support Ukraine on Victory Day. After the Fed’s rate hike, gold prices recovered. It is also among the thoughts of experts that the stock market may experience volatility due to Russia’s Victory Day.
Gold prices traded weakly on Monday, with spot gold prices on COMEX approaching $1,876 an ounce in morning trading. A stronger dollar and strong US bond yields continued to weigh on gold, keeping gold prices in a tight range below $1900 an ounce. 10-year U.S. Treasuries rose 0.59% to 3.14% in morning trading.
