Gold -term transactions, increasing international tensions and decrease in risk assets supported the purchases of precious metal purchases perceived as a paradise on Monday. Market evaluations and estimates of analysts Kriptokoin.comWe have compiled for readers.
According to Adrian Ash, gold is in demand clearly
Bullionvault Research Director Adrian Ash commented with the NASDAQ compound index with a decrease of approximately 15 %compared to November, “Gold is clearly in demand as portfolio insurance”. Jim Wyckoff, senior analyst of Kitco, evaluates and adds the following in a daily note, “Geopolitics is currently on the front of the market and this causes some concern between traders and investors ve and adds:
Despite the West’s attempts to deterd the Russian President Vladimir Putin by threatening the sanctions, Russia seems ready to occupy Ukraine.
Gold move came before the meeting on Tuesdays and Wednesdays to determine the tightening framework of the federal reserve to combat the increasing inflation pressures. Expectations are that this week will prepare the ground for increasing the interest rates ranging from 0 to 0.25 %this week to three times to restrain inflation in 2022. Adrian Ash from Bullionvault, in a statement, referly to the following issues:
Rising interest rates typically blow a wind against gold. However, the Fed’s risk of making mistakes is combined with the political impossibility of saving stock investors with cheap money, making the situation worse.
Ricardo Evangelista: This assumption looks supportive for yellow metal
The uncertainty about the effectiveness of high values in stocks and the effectiveness of the central bank’s tactics of fighting inflation also significantly reduces the risk appetite. In a daily research note of Activtrades’ senior analyst Ricardo Evangelista, as the risk of avoiding the risk among investors continues to increase, gold prices are increasing.
However, Ricardo Evangelista says that the FED meeting contains more downward risks for gold buyers, and that this situation can at least limit any important rise despite the rise ground for valuable commodities. The analyst interprets the effect of the attitude of the Fed on the markets as follows:
As inflation continues to create concern, investors are afraid of more hawk tendency of the US central bank, waiting for this week’s Fed meeting with some concerns. If the Fed’s hawk is confirmed, it is likely to create more negativity for risk -related assets. This assumption seems supportive for gold, but it also supports the US dollar, and the reversed correlation between the two beings can limit larger gold gains because it gains traction in the markets avoiding risk.
The data from IHS Markit on Monday showed that the service -oriented company index decreased from 57.6 to 18 months in the last month of 2021 to 50.9, while gold prices were added to their gains shortly before withdrawing this rise.
“More gains for gold can be on the pipeline”
According to the preliminary data from the CME Group, the open interest rate in the gold -futures markets increased by approximately 35.5 thousand contracts on Monday and continued the rise trend after withdrawing on Friday. In the same line, after a three -day decline, the volume increased by about 54 thousand contracts.
Market analyst Pablo Piovano says that gold prices have made good gains on Monday in the middle of the increasing open position and volume, which is an indication that more gains may be on the pipeline in the very near term. However, according to the analyst, the next important obstacle for the precious metal continues to remain at the last peaks of around $ 1,850.