Dollar index fell in the morning hours. Australia’s central bank announced it would cut back on bond buying, leaving the cash rate at a record low of 0.1 percent. For gold, which has risen to the $1,810 levels meanwhile, one analyst mentioned that the expensive metal’s upside potential could be finite. Another analyst emphasized that gold can preserve its recent gains. Here are the developments and analyzes for gold…
Gold analyst: Do not expect to return to early June levels
Gold hit a three-week high on Tuesday and rallied above the spiritual level of $1,800 as the dollar’s slump boosted demand for bullion. Meanwhile, investors were waiting for the minutes of the US Federal Reserve’s June meeting with the aim of clarifying monetary policy. Gold, which has reached its highest level since June 17, rose to $ 1,813 during the day. So what triggered this rise?
DailyFX strategist Margaret Yang said, “What drives gold prices is basically a weakening US dollar. Gold sold heavily after the June FOMC meeting and buyers have returned to the market as expectations are now priced in. However, the upside potential of gold may be finite given the global ‘hard’ turn in monetary policy. Do not think that prices will return to early June levels anytime soon,” he said.
Avtar Sandu: Gains can be kept, but…
According to experts, the dollar weakened by 0.2 percent, moving away from the last three-month high last week, making gold cheaper for other currency holders. Cryptocoin. com
As we have previously reported as , the US Federal Reserve meeting held last month was thought to signal that interest rate hikes would begin in 2023, and this sent gold prices below the $1,800 level. This week’s focus has been on Wednesday, when the minutes of this meeting will be announced.
Phillip Futures senior commodities manager Avtar Sandu said, “Gold prices may maintain their recent gains, but staying above the $1,800 resistance may not be on traders’ radar until the minutes of the Fed’s meeting are released.”
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