Gold prices remained in a narrow range on Thursday, cautiously waiting for US inflation data that can offer new clues about the speed of Fed’s monetary policy tightening. Spot Gold maintains its place at $ 1,834.35, while the high on Wednesday is traded close to $ 1,835,60. US gold futures remained fixed at $ 1,835,70. Market reviews and price estimates of analysts Kriptokoin.comWe have compiled for readers.
Stephen Innes: Gold can actually be a very good hedge in the long run
The US consumer price index, which will be announced later on the day, is expected to increase by 0.5 %by 7.3 %annually, which will be the biggest increase since 1982 according to a Reuters survey. A solid inflation data polishing the attractiveness of gold as a means of protection of inflation, while the FED responds to this with interest rate increases, increases the cost of opportunities for keeping the ingredients without returns. Stephen Innes, the executive partner of SPI Asset Management, makes the following assessment:
I think that the dollar will weaken despite the increase in interest rates because all other central banks raise interest rates against inflation. If the FED starts to increase interest rates very quickly, it is not good for the economy, especially with all other central banks do the same thing. In this sense, gold can actually be a very good hedge in the long run.
US and European government bond rates, interest rate hike expectations increase, but the indicator of the 10 -year US Treasury interest rates, the highest levels of November 2019, when the week, the dollar remained fixed. Technology -based global stocks cooled down on Thursday, with a more cautious stance between investors’ uncertainties regarding the appearance of inflation and interest rates.
“Gold needs to overcome this resistance range for a serious return”
In a note, Anz says the expected aggressive FED interest rate hikes can polish a slightly metal from the second quarter. RJO futures transactions are senior market strategist Daniel Pavilonis, while making the following comment:
The dollar has fallen a little and it seems to be supportive for gold. In general, however, the gold market is a little horizontal with the expectation of today’s CPI figure.
The US Federal Bank officials signaled that they will begin to increase interest rates next month to combat high inflation. Atlanta FED President Raphael Bostic said that on Wednesday, the United States may decline in inflation, but this year, he added that he was a slightly faster interest rate increase rate. Thinkmarkets analyst Fawad Razaqzada underlines the following issues:
Rising prices erode the value of nominal currencies around the world and make a attractive investment for many valuable metal. However, gold must now overcome the $ 1,830-1,850 lock resistance range to make a more serious return.
Pablo Piovano: Gold prices still see the summit of 2022
Open interest to gold futures markets increased on Wednesday in the third session in a row. Considering the preliminary data from the CME Group, approximately 8,000 contracts rose. Instead, the volume reversed the previous structure and approximately 11.5 thousand contracts shrunk.
Gold prices extended the rise trend for a new session on Wednesday, exceeding $ 1,830 in an increased open interest environment. However, according to market analyst Pablo Piovano, the door remains open to continue strong recovery with the Emergency target of $ 1,853 at the YTD summit.
