Gold prices fell on Tuesday to close their lowest in nearly two weeks. However, it has been stuck between $1,800 and $1,880 since mid-May. Analysts interpret the market and share their forecasts.
“Tarders know this headline will increase interest”
Precious metal prices slumped towards session slowdowns soon after the release of US consumer confidence data for June, before cutting their losses. The data showed that consumer confidence fell to a 16-month low of 98.7. Naeem Aslam, chief market analyst at AvaTrade, comments:
Economic data shows that the US economy is in recession. Tarders know it’s only a matter of time before this headline officially confirms that it will attract more interest in a risk-averse asset like gold.
Suki Cooper: Gold stuck in increasingly narrow range
Suki Cooper, director of precious metals research at Standard Chartered, also shared his views. Cooper notes that investors have digested the threat of slowing economic growth, rising inflation and more aggressive rate hikes from the Federal Reserve. He says that in this environment, the gold price remains in a range for now. In addition, the analyst makes the following statement:
Gold oscillated between the risk of faster rate hikes and prolonged high inflation and slower growth. For this, it remained in an increasingly narrow range.
“Big exits from ETFs put pressure on yellow metal”
Commerzbank commodity analysts say outflows from gold and silver exchange-traded funds are putting pressure on the precious metals complex. In this context, Commerzbank precious metals analyst Daniel Briesemann makes the following assessment:
Another big outflow from ETFs likely put pressure on gold. Assets in gold ETFs tracked by Bloomberg were down by as much as 6 tons yesterday. The momentum of the exits has picked up again recently.
TDS: Yellow metal pulls in two directions
cryptocoin.com As you follow, there is a postponement regime in the gold markets. Strategists at TD Securities expect this regime to continue for now. Strategists comment as follows:
Yellow metal pulls in two directions as a hawkish Fed regime clashes with recession fears. After all, a Fed walk cycle tends to be associated with increased recession risks.
“Gold trade will continue to be a postponement festival”
According to strategists, the Fed’s ability to control inflation is limited. It is also necessary to consider the interruption of the supply side. Thus, this walking cycle is different from its recent historical counterparts. From this point of view, strategists make the following assessment:
In contrast, golden beetles sniff out a potential stagflationary outcome associated with lower growth. However, central banks face a credibility crisis due to persistent inflation. That’s why gold bugs need to consider that central banks could keep raising interest rates for a longer period of time. Gold trading will likely remain a snoozefest. So the bears are waiting for a catalyst to dismantle the contented position.
