In our analysis the other day, we wrote about the fact that the price of gold is over a long march and that it is worth being more careful near a historical peak, in which we also reviewed the background of the rise.
Friday sees a fall of around 2% to $2,400, as the dollar strengthened slightly against major currencies and the yield on the 10-year US Treasury rose.
“In addition to profit-taking, the market is being dragged down by the narrative of a soft economic landing; this could put pressure on gold prices as investors shift money from safer investments (like gold) to riskier investments,” he told Reuters after seeing the exchange rate fall. Alex Ebkarian. However, the operational director of Allegiance Gold also added, anticipating a further rise in gold prices, that they see a lot of investment decisions that could bring demand to the gold market.
The interest rate futures markets are now counting on a 98% chance that the US central bank will cut interest rates in September, according to CME’s FedWatch tool. Interest in non-yielding assets such as gold generally increases in a low interest rate environment.
Federal Reserve Chairman Jerome Powell earlier said “recent inflation data adds some confidence” that the pace of price increases can sustainably return to the central bank’s target.
According to Chris Mancini, Associate Portfolio Manager at Gabelli Gold Fund:
If ETFs (exchange-traded funds) add gold to their portfolios as interest rates fall, it should rise substantially.
Mancini added: “If governments implement stimulus measures – particularly infrastructure – in view of weaker economies, then both gold and industrial metals should rise at the same time.”
In addition to gold, the price of spot silver fell by about 3% to $29.17 per ounce on Friday. Platinum fell slightly (0.2%) to $965.90 an ounce. Palladium fell (1.2%) to $918.93 an ounce.
Source: Reuters
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Source: www.portfolio.hu
