Stonex refers to the ‘early indicators’ of the gold price. According to Stonex, the sense of risk may be a return in the second quarter with the “early indicators” of a price return for gold. According to Rhona O’Connell, the President of the Asian regions and EMEA market analysis in Stonex, the price of gold may rise to $ 1,820 per ounce.
Rhona O’Connell: The tendency in Gold seems to change in the second quarter
In Stonex, Rhona O’Connell, the President of the Asian regions and the EMEA Market Analysis, interprets the yellow metal markets and says:
Following the performance of Gold in the first quarter of this year, the first three -month decline of 2018 since September 2018… The price seems to be basically rising. It is seen that the relaxation of ten -year bond interest and attitudes that help Gold to stability have changed slightly. We will see whether this is a technical correction or an increasing belief that the US bond market is a longer way to be a longer way.
In the majority of the first quarter, gold fell with 10 -year US Treasury bills due to the perceived inflation risk of the market. However, according to analysts, this tendency seems to change in the second quarter, which means a potential price change for precious metal.
Rhona O’Connell: Gold demand is increasing…
Rhona O’Connell said that the Central Bank has not planned to increase interest rates in the near future and that markets may start to believe that this promise can trigger a more risky environment. Rhona O’Connell adds the following to his explanations:
In the background, especially in China, local prices are currently recovering the physical market in Asia with a premium of approximately $ 9/ounce, according to Loco London. In the first quarter of Perth Mint elsewhere, especially in the United States of Germany and the United States, very strong gold and silver coin sales reported. The demand for gold increased and the mint could not keep up with the silver mine demand for money. In March, the mint sold 130,000 ounces of gold and about 1.6 million ounces of silver.
Another positive price trigger is the fact that central banks start receiving gold again. For example, Hungary’s Central Bank increased its gold reserves from 31.5 tons to 94.5 metric tons and suggested “long -term national and economic policy strategy targets”.
Rhona O’Connell: The price of gold is looking at $ 1,820 per ounce
From a technical point of view, according to analysts, gold price support is in 10 -day and 20 -day moving averages. According to analysts, the resistance is still at the 50 -day moving average and 1,757 ounce. Rhona O’Connell says that if gold can cross this resistance line, prices can rise to $ 1,820 per ounce. According to Rhona O’Connell, there are early indicators that the price is starting to return.
Rhona O’Connell said last week that Gold could not clean $ 1,750 at ounce level and that this could weaken the sensitivity. This week, the markets closely follow the Treasury tenders, the latest inflation figures and the Federal Reserve President Jerome Powell’s statements at the Washington Economy Club on Wednesday. On Monday, a three -year bond of $ 58 billion and a 10 -year -old bond of $ 38 billion took place. The sale of a 30 -year bond on Tuesday will be seen.
