Gold prices slid to a one-week low at $1,787 on Friday, as the US Federal Reserve’s December meeting minutes boosted dollar and Treasury yields, signaling faster rises in interest rates. So, what does analisdollarser say? As Kriptokoin.com , we convey the opinions of 3 analysts…
What does Analisdollarser predict for the gold price?
Independent analyst Ross Norman said that the Fed minutes, which signaled a tightening in the money market, increased the dollar significantly and did not help gold. Fed minutes released Wednesday showed officials discussing shrinking the U.S. central bank’s overall asset stocks and raising interest rates earlier than expected to fight inflation.
Some investors see gold as a hedge against high inflation, but the precious metal is highly sensitive to rising US interest rates, which increases the opportunity cost of holding low-yielding gold. Investors are now waiting for the US nonfarm payrolls report to be released today. The ADP National Employment report showed that U.S. private payrolls rose more than expected in December, pointing to underlying labor market strength, but skyrocketing COVID-19 infections could slow the momentum in the coming months.
emphasis on $1,830
ActivTrades senior analyst Ricardo Evangelista said, “Despite the rise in the number of new COVID-19 cases, a scenario that would normally support the precious metal due to its safe-haven appeal, gold “It’s facing headwinds from a strong dollar,” he said. ThinkMarkets.com market analyst Fawad Razaqzada wrote in a daily note that investors “must see a sharp drop in inflation to curb the Fed’s rapid tapering.” But if that doesn’t happen, “more challenges await,” he said, using the following phrases:
Gold can’t take a break. It failed to break above the key $1,830 resistance level and gold bulls need to see a clean break above $1,830 to reverse the balance.