The price of gold climbed above $1,800 on Friday, bolstered by bets that central banks could keep interest rates relatively low to avoid growth risks. However, as investors try to gauge the timing of the US Federal Reserve’s timeline to cut bond purchases; A general rise in the dollar led to a decline in gold on a weekly basis. While the executive of SPI Asset Management said that the gold price is bottoming out, gold could drop to $1,700 in the fourth quarter of 2021, according to Citi Research analystsdollars.
SPI Asset Management manager: Gold price continues to buy from bottom levels
Spot gold rose 0.38 percent to $1,800 an ounce. But on a weekly basis, it’s down 1.4 percent so far, heading for the first seven-day drop it’s seen in five weeks. U.S. gold futures rose to $1,802. The dollar, which facilitated the rise of gold, moved a little softer during the day and made gold more attractive to those who hold other currencies.
Stephen Innes, managing partner of SPI Asset Management, said that gold continues to buy at bottom levels as central banks are in no hurry to raise interest rates. “Growth is still a major concern for central banks,” Innes said. While non-yielding bullion tends to win when interest rates are low, gold investors follow the Fed’s cues closely, while some see bullion as a hedge against high inflation fueled by massive stimulus.
Citi Research: Gold could drop to around $1,700 in Q4
The signals are also thought to be mixed, with a recent Fed report showing the US shrinking a bit in August. But a number of Fed officials said this week that a slowdown in job growth will not thwart plans to cut asset purchases this year.
Citi Research said in a note that despite heightened macro risks, the Fed is unlikely to take the 2021 cut off the table and gold should drop around $1,700 in the fourth quarter. For more gold news Cryptocoin. com “Famous Manager: This Presence is Stronger Than Gold! You can check the article titled “Downs Opportunity”.