As we reported , gold prices yellow rose on Friday. This rise was driven by growing concerns about the spread of the coronavirus delta variant and its impact on recovery. Gold is on track for a second straight weekly gain as rising concerns weaken risk sentiment.
pessimism about medium-term outlook supports gold prices
Spot gold is 0% at the time of writing. It rose 26 to $1,784 an ounce, about 0% on the week. 3 increased. U.S. gold futures were trading at $1,787, up 0.24%. The pessimism about the medium-term outlook supports gold prices, said Nicholas Frappell, global managing director of ABC Bullion. Nicholas Frappell used the following statements in the continuation of his statement:
However, the market is struggling a bit with concerns about the timing of the contraction.
Asia stocks headed for their lowest week since November and their worst week since February. Meanwhile, the rival safe-haven dollar is holding near a nine-month high, bolstered by concerns about the coronavirus and expectations that the Federal Reserve could start reducing stimulus this year.
Why is Jackson Hole meeting important for gold?
Citing the Jackson Hole meeting, DailyFX currency strategist Ilya Spivak commented:
As we enter Jackson Hole, some of the corrective gains we’ve seen underneath are likely to be reversed.
U.S. central bank governor Jerome Powell will be speaking at a Federal Reserve symposium next week in Jackson Hole, Wyoming. Jerome Powell will talk about the “k outlook,” which is expected to provide a clearer roadmap for contraction plans. Ilya Spivak predicts that markets will continue to rely on narratives that the Fed’s contraction is imminent, and an official announcement could be made in September this year.
Fed shrinkage reduces gold’s attractiveness is it?
Gold is seen as a hedge against inflation and currency depreciation. According to analysts, the Fed’s contraction will eliminate both of these conditions, thereby reducing the attractiveness of gold. Silver, another precious metal, held steady at $23.24 an ounce and headed for its third weekly decline.