All eyes are turned into a six -month monetary policy report that Federal Reserve President Jerome Powell will be submitted to Congress next week, while the market is over $ 1,800 per ounce and the markets are looking for new decrease clues. Dear metal, August comex gold futures transactions are traded at $ 1,808, while closing the week with 1.4 %earnings.
According to analysts, the statement of the Federal Reserve President will make the event to be followed next week
According to analysts, Federal Reserve President Jerome Powell’s statement will be followed next week. Ing BAŞ International Economist James Knightley, “Considering the supply -oriented pressures in the economy, the possible timing of policy tightening stands out and can give more clear clues that the reduction of Powell QE asset procurement will begin this year.”
Next week, more than one data report will help to predict where markets are the US economy and how much hawk the FED will be. Radar has June inflation figures and retail sales figures, which will be announced on Tuesdays and Fridays, respectively. Other important data clusters to be followed, PPI figures on Wednesday and unemployment applications on Thursday, Philadelphia Fed Manufacturing Index and NY Empire State Manufacturing Index.
Edward MOYA: These situations will provide more compatible monetary support
However, considering the spread of COVID-19 variants around the world and the recent docile economic figures, some analysts do not see that central banks, including the FED, have recently become aggressively hawk. Oanda Senior Market Analyst Edward Moya told Kitco News, he said:
This week, the COVID-19 Delta variant has been focused on global growth concerns this week. Most of the world is not close to the end of this pandema. This will provide more compatible monetary support.
Bart Melek: There is no reason to think that the Fed will become particularly aggressive on the interest rate front.
TD Securities Global Strategy President Bart Melek said that the FOMC meeting minutes published this week did not point to the hawk of the FED. All that Fed said was that he wasn’t willing to sacrifice price stability instead of full employment. Bart Melek said:
The FED will remain in compliance with the problems related to employment data, including a released Delta variant, a decrease in inflation pressure (including a significant decrease in timber prices) and the low participation rate. There is no reason to think that the Fed’s interest rate front will become aggressive, especially on the front.
Edward Moya: This is the story that needs to focus on gold markets
Edward Moya added that it was good news for gold. Edward Moya will continue in the statements, “next week we will see the future of more affordable pricing reports than Europe and the United States, which will keep the gold trade strong. Gold will probably benefit from the Fed, which will probably continue to be supportive. ”
There are already signs that the central banks around the world are in harmony. For example, China said in a statement on Friday, from July 15 onwards will reduce the requirement rate of 50 basis points for more than 50 basis points, he said. This is a rescue plan that will release about $ 154,19 billion in long -term liquidity that will support China’s slowing economy after COVID. Edward Moya said:
This is the story that needs to focus on the markets. This is a big step for a country that pioneered economic recovery against COVID-19. You will see that this theme continues all over the world.
Edward Moya: This can accelerate the avoidance of risk and can flow to gold
Global growth concerns and the more adaptation of central banks are two main reasons why Edward Moya is optimistic about forward gold. Edward Moya said:
Growth concerns cause some banks to pump up to the point of reducing their deductions. There is more precaution there. The slowdown in China’s GDP supports the argument that we are still struggling with this epidemic. This may accelerate avoiding risk, and if this, it may be a flow to Gold.
Ole Hansen: We can go back to $ 1,900 per ounce for gold price
US Treasury bonds began to worry the markets with the 10 -year bond falling below 1.3 %this week. At the time of writing, 10 -year return rose to 1.35 percent. Bart Melek said, “There are concerns that low returns significantly reduce growth expectations. Gold responded positively to low yield. ” he said. Bart Melek added that a Fed compatible for Gold means a chance to return to $ 1,900 per ounce in the next few months.
Ole Hansen, President of Saxo Bank’s Commodity Strategy, said that trade -dependent trade is a high probability in the near term due to investors’ orientation to the summer holidays. Kriptokoin.comAs we have reported before, for more gold estimation “Gold analyst listed the levels to be seen”You can review our article. Ole Hansen said:
Many investors will close their computers during summer holidays. For this reason, investors can at least expect to see a lot of noise in the market next month.
