Gold fiadollaryellow is struggling to gain momentum on Wednesday as market participants weigh the US Federal Reserve’s early rate hike expectations against rising Covid-19 cases. We have compiled analisdollarserin opinions and forecasts evaluating the gold markets for the readers of Cryptokoin.com .
Brian Lan: Gold investors more cautious due to Fed concerns
GoldSilver Central chief executive Brian Lan said that gold will be put under pressure, with the expectation that interest rates will rise in March. attributed to him acting more cautiously in this regard. But Brian Lan notes that if Omicron is not reined in and remains a problem globally, gold should be backed by safe-haven demand as more central banks will buy gold.
The US dollar index (DXY), which makes gold less attractive to other currency holders, hovered near a two-week high touched on Monday, following gains in US Treasury yields. The 10-year benchmark bond yields rose to the highest level in more than a month on Tuesday as the Fed is ready to raise interest rates by mid-year to rein in hyperinflation if investors persist. It should be noted that higher interest rates increase the opportunity cost of holding non-interest bearing gold.
Market participants can provide clues regarding the US Federal Reserve’s plan to raise interest rates and reduce pandemic-induced stimulus, at the Federal Reserve’s 14-15 December 2021 at 7:00 GMT. He awaits the minutes of the policy meeting in The US reported nearly 1 million new coronavirus infections on Monday, setting a global record, according to the Reuters agenda.
Gold is below $1,800 in the medium term
Michael Langford, AirGuide’s director of corporate consulting, said, “Because other asset classes offer better leverage for risk and return, gold gold’s upward move is suppressed” and points to the following levels for the yellow metal:
See gold’s short-term gains at $1,820, but the overall medium-term outlook is below $1,800.
OANDA senior market analyst, Ed Moya, states that the year started with new records for the stockdollar series, but as it is difficult to determine whether this streak will continue, investors are turning to the safe haven again. Ed Moya makes the assessment that “Omicron’s effect will be felt mostly on the inflation side and k recovery”.
Wall Street meanwhile slid gains after an optimistic start to the New Year as investors turned down risk-taking after data showed US manufacturing slowed last month and Covid-19 concerns persisted.
“This inconsistency imposes an upper limit on prices”
TD Securities, stating that concerns over the Omicron variant triggered its safe-haven offer for gold, comments:
Higher gold prices are inconsistent with the global market hype of a 70% probability of a Fed rate hike in March, which puts a cap on the price.
Kitco Metals senior analyst Jim Wyckoff says in a note, renewed inflation concerns could hit the market in the short-term and dampen risk appetite as bond yields are likely to continue to rise.
Gold gains, however, came as Fed fund futures traders scammed three rate hikes by the Federal Reserve by the end of 2022, despite higher yields on US Treasuries and a stronger dollar.