Gold prices in yellow fell below $1,800 an ounce on Friday, offsetting a weekly loss for the first time in five weeks and hit a wave of selling. Many analysts also evaluated the next move of gold and the latest developments. Request Cryptocoin. com
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TD Securities analyst: Jump in US Treasury yields blocked the rise for gold fiadollaryellow
Bart Melek, head of commodities strategies at TD Securities, said a jump in US yields has prevented speculative funds from moving convincingly into gold. “The rising U.S. producer price index data may lead people to believe that with the Fed reducing its bond purchases, it may be a little less compliant,” Melek said.
Gold investors are keeping a close eye on the Fed’s decisions, as non-yielding bullion tends to win when interest rates are low. Commerzbank analyst Daniel Briesemann said many gold market participants were on the sidelines, in part because of the uncertainty surrounding the Fed’s bond-buying cutback timeline. According to Briesemann, “The price appears to be profiting from the drop in US bond yields yesterday after a successful bond auction meeting buoyant demand.”
Altavest’s Michael Armbruster: We like to buy gold from the bottom
Altavest managing partner Michael Armbruster pointed out that the ICE US Dollar Index was slightly higher and Treasury yields were also up on Friday, “so there was bidirectional headwinds underneath.” “We think the dollar will weaken by the end of the year and US Treasury yields show no signs of exiting the last range,” Armbruster said. “Given the strong negative correlation of gold with the US dollar index in recent weeks, we still like to buy gold below $1,800 at the bottom,” he said.
Analisdollarser at Citi Research said in a note Thursday that September 22 “looks particularly big for gold”, referring to the date of the next Federal Reserve announcement on monetary policy. “Following a neutral Jackson Hole speech and, more importantly, a weak US jobs report for August amid the delta variant spread, we are challenging the Fed’s announcement expectations for a reduction in bond purchases from September to November.” “However, a decline in asset purchases still seems to be coming in December,” they said.