While government bond returns climbed to the highest level within a year, the cost of having gold increased. Due to this situation, gold prices, a third straight decline noted. World -renowned analysts interpret the gold market. Here is what kind of tendency to follow in the light of analyst estimates next week…
Edward Moya: Gold prices can see a sharp drop
The increase in bond returns with a 10 -year Treasury Bonds creates pressure on stocks and gold as it progresses on the psychological threshold. This forced investors to re -evaluate the relative cost of having both assets compared to risk -free treasury bonds. Oanda’s senior market analyst Edward Moya said in a market update:
The faster the global bond returns rise, the sharper the fall for gold. The increase in Treasury returns will probably not raise this speed, so gold will soon begin to stability. However, if the bond sale continues and the gold breaks critical support at $ 1,750, technical sales may accelerate.
Considering that gold prices are currently breaking the level of $ 1,750, things may become ugly, according to Edward Moya. According to the analyst, gold prices may see a sharp decrease.
Naeem Aslam: The price of gold does not openly benefit from the expression of the Fed
Avatrade Chief Market Analyst Naeem Aslam also analyzed the markets and made the following statements:
The price of gold does not explicitly benefit from the Fed’s narrative… This loose monetary policy seems to be permanent here for a while. Investors believe it is time to risk. Investments now do not see any reason to protect against risks.
Vaccination practices for the lethal variants of deadly disease and the progress in boosters help support the rise in the economy in the second half of 2021. This increases the pressure on the gold prices falling as the returns rise.
Chintan Karnani: Gold can make a rally next week!
Insignia Consultants’ chief market analyst Chintan Karnani told Marketwatch, he said:
There is more pressure in Gold and investor interest in Bitcoin is increasing. Numerous short -term gold investors have invested in BTC and continue to invest in crypto currencies. When we look forward, the USA on February, non -agricultural payrolls and other business figures are on the radar of investors. Before the data, I expect to see a short -term rally at gold prices next week. Inflation is very high all over the world in February. I expect investors to focus on inflation very soon. High inflation means rising gold prices.
