Gold prices fell slightly on Thursday as US Treasury yields rose, but came with some support from concerns over persistently high inflation. While the price of gold increased by 0.5 percent to $ 1,792 an ounce, December gold futures touched the levels of $ 1,791. The price of gram gold exceeded 550 liras. So, what levels will the gold price see now? Here are the opinions of the experts…
ThinkMarkets analyst: Inflationary pressures pushed gold demand up
Referring to the recent rise of gold, ThinkMarkets analyst Fawad Razaqzada said: “Rising yields have been clearly negative for gold, but there are also rising inflationary pressures as crude oil rises, which has increased demand for the precious metal.” According to experts, gold is stuck between the $1,800 resistance and $1,750 support due to conflicting factors. 10-year bond yields in the US hit the highest level in the last five months.
While the yellow metal is generally regarded as an inflation hedge, reduced stimulus and interest rate increases increase the yield on government bonds, raising the opportunity cost of holding non-yielding bullion. Cryptocoin. com
As we reported , two US Federal Reserve officials said on Wednesday that the central bank should start easing stimulus measures, but it’s too early for rate hikes.
Forecast for the end of 2022 from the series of UBS analisdollar: 1. 600 dollars!
Rising inflation expectations and softening growth prospects could bolster gold prices in the next month or two, but this is not indicative of a “regime change” to stagflation, UBS analystsdollar said in a serial note. The bank estimates precious metal prices at $1,700 by the end of March 2022 and $1,600 by the end of December 2022.
The dollar index, limiting the decline of gold, remained flat after hitting a three-week low at the beginning of the session. On the other hand, OANDA analyst Craig Erlam said, “The short-term trend is still against the dollar, which supports the gold prices. 93-93 in the dollar index. A move below the 50 support should force gold above $1,800,” he said.