Gold price recouped some of its losses on Friday after falling nearly 3 percent in the last session, but a strong dollar continued to slide for a second week with focus on next week’s Federal Reserve meeting. Meanwhile, analisdollarser shared his comments. Cryptocoin. com we have compiled some analisdollarserine comments…
StoneX analyst: Investors are watching the Fed for gold price
Bullion slumped nearly 3 percent on Thursday after an unexpected increase in US retail sales boosted expectations that the Fed could reduce stimulus sooner, leading to a rally in the dollar. The dollar held close to a three-week high, raising the cost of gold for buyers of other currencies, and bullion was down 1.6 percent this week, making it on track.
StoneX analyst Rhona O’Connell said, “Everyone is watching the Fed. “Although the discussion of reducing bond buying is still ongoing, it would be very tempting after a $40 drop in the price of gold (looking for an entry point).” “Investors will investigate Fed Chairman Jay Powell’s press conference,” O’Connell said, adding that the possibility of the Federal Reserve’s monetary policy adjustments will not stop the possibility of a downside reaction. Cryptocoin. As we reported on com, the Fed’s policy-making committee will meet on Tuesday and Wednesday.
Exinity analyst: US monetary policy could lead to a decline in gold
“Gold fans are trying to clean themselves up,” said Han Tan, chief market analyst at Exinity. Tan added that if US monetary policy normalization converges, it will put more downward pressure on fiyadollarsar.
k relaxation of support measures will not only tarnish gold’s safe-haven status, but any subsequent rise in interest rates will translate into a higher opportunity cost of holding non-yielding assets such as bullion.
ActivTrades analyst: The inverse correlation between the US dollar and gold was the cause of yesterday’s losses
“Gold has had a bad week and price action may be on the way for reflation trading to come back to end 2021,” said Michael Armbruster, managing partner at Altavest. “Unfortunately for gold fans, gold tends to trade lower in a reflationary regime because US Treasury yields tend to rise,” he added. Meanwhile, Armbruster cautions that there will be no announcement to reduce bond buying at the Federal Reserve’s meeting next week.
Ricardo Evangelista, senior analyst at ActivTrades, said in a daily report, “Yesterday’s losses came as a result of the inverse correlation between the precious metal and the US dollar, as the upside surprise currency was unexpected after the release of US retail sales while the consensus was in a contraction direction. got some support,” he said.
Evangelista said that in the long run, evidence of a recovery in the US “helps the situation for those who advocate an earlier reduction in bond buying and therefore supports the US dollar, a scenario that could lead to further weakening of gold.”