As we all know, gold bas outperformed many assets in the current
year. Gold is up about 19% so far this year, as lower interest rates and
central bank stimulus have supercharged existing upward momentum for the
precious metal.
According to many analysts, the one factor that will continue to
drive gold prices higher in the near term is further weakness in the U.S.
dollar as the current embarks on a new downtrend.
Gold is typically seen as a “safe haven” asset in times of
uncertainty because it is less volatile than other investments, like stocks.
What’s more, the metal moves inversely to the U.S. dollar, meaning that when
the greenback moves lower — as it has done lately — gold moves
higher.
Gold is benefitting from the geopolitical situations and the pressure that has been created worldwide.
Globally, gold prices edged lower on Monday due to a stronger US dollar, but worries over surging Covid-19 cases and its impact on the global economy kept the safe-haven metal above the psychological level of $1,800 per ounce.
Though gold was struggling to keep momentum above $1800, several analysts as well as the top gold dealers in India believe that market has a lot of upwards potential and support for gold.
The gold market is consolidating above $1,800 an ounce and although bullish sentiment has fallen from record levels, market analyst and retail investors remain bullish on prices next week.
Gold is benefitting from the geopolitical situations and the pressure that has been created worldwide.
Globally, gold prices edged lower on Monday due to a stronger US dollar, but worries over surging Covid-19 cases and its impact on the global economy kept the safe-haven metal above the psychological level of $1,800 per ounce.
Though gold was struggling to keep momentum above $1800, several analysts as well as the top gold dealers in India believe that market has a lot of upwards potential and support for gold.
The gold market is consolidating above $1,800 an ounce and although bullish sentiment has fallen from record levels, market analyst and retail investors remain bullish on prices next week.
Major economies have been struggling on the path of development
and are constantly announcing new stimulus measures to support the economy. The
virus continues to weaken the global scenario, but U.S and Europe have been
trying to pump in fiscal stimulus to keep the growth going. This step will weigh
on the U.S. dollar and support gold prices.
Although there is strong sentiment in the marketplace, some
analysts and industry insiders from RSBL have noted that a correction
would be healthy following break above long-term support.
U.S markets are languishing for the past 2-3 days and with no
major economic data expected till Wednesday, gold and silver are expected to maintain
the same stance- mild pull back and positive momentum.
Small dips can be considered as an opportunity to add gold to your
portfolio confirms Mr Prithviraj Kothari of RSBL
The precious metal has reached a new range of $1,750-$1,830 in
July, up from the May-April range of $1,668-$1,750, If gold break the
upside, then $1,850 and even $1,900 is possible.
Right now, gold is consolidating but we can see higher prices next
week as major data is expected to be released after Wednesday.
·
U.S House
price index
·
U.S. existing
and new home sales
·
U.S latest
jobless claims
·
U.S Manufacturing
PMI
All the above-mentioned data is important and needs observation as
it will give investors an idea whether we are seeing an actual recovery or not.
Currently gold prices are benefiting from
·
loose monetary policy,
·
low real yields,
·
record inflows into exchange-traded funds
Gold is
expected climb to an all-time high in the next six-to-nine months, and there’s
a 30% probability it’ll top $2,000 an ounce in the next three-to-five months.
If gold can break the $1,829 resistance, then the precious metal
could be heading for its all-time highs.
No comments:
Post a Comment