- With the re -start of USD sales, the price of gold rises to $ 1,800.
- US treasury bonds are low in the midst of pigeon fed bets.
- According to the popular analyst Dhwani Mehta, the technical indicators of the XAU/USD parity point to the upward direction.
DHwani Mehta: Technical indicators for gold price indicate more increase
The gold price (XAU/USD) extends the three -day optimistic momentum to Monday, and the bulls are rapidly approaching $ 1,800 with $ 1,790, the highest level of two months. On the European morning, the acceleration of sales pressure in the US dollar fired an ascension in the yellow metal. The US dollar index decreased by 0.40 %per day to the lowest level of seven weeks with 91.17 %. The US dollar continues to be extensively presented everywhere thanks to the mood encouraged by the optimism in Europe, the United Kingdom and the high vaccination rates in the United States.
Successful vaccination applications point to a faster global economic recovery and the presence of a safe port reduces the dollar. In addition, after the expectations of pigeon FED, the weakness of US treasury returns, cooperates with a decline in money. The precious mine also receives support for the news that China allows domestic and foreign banks to import large amounts of gold to the country. In addition, according to the popular analyst Dhwani Mehta, a positive technical installation supports the renewed gold increase. According to Dhwani Mehta, the US dollar price movements and wide market sensitivity will pave the way for gold investors, especially in the absence of economic news from the USA.
HSBC economists: Gold prices can see a positive tendency with these developments
HSBC economists expect US inflation to relax in late this year. If this contributes to the fall of returns and dollars, the gold can see a positive tendency. Moreover, according to economists, money and fiscal policies continue to provide basic support for yellow metal. HSBC economists make the following statement:
Some inflation effects have begun to raise the US CPI in the next few months, which may see that the US headline CPI inflation is approaching about 4 %in May. However, we expect the US inflation pressure to be alleviated in the second half of the year. If the US inflation appearance develops as expected, the US can relax in the Treasury returns and possibly the USD in later years and allow gains for the gold price. Money and fiscal policies continue to provide basic support for gold price. Therefore, more gold weakness in the near term should be humble. Although the evidence that financial expenditures support Gold is positive, it depends on the wider interest rate environment. This year, while waiting for a modest decrease in the USD, the factors such as trading tensions or any increase in geopolitical risks will also support Gold. The possible financial market instability due to the value of asset prices may also trigger the demand for renewed quality assets for gold.
