Spot gold price rallied after hitting $1,808, its highest level since June 17. US gold futures 1%. It rose by 2 to $1,805. So what’s the focus of this week? What should investors expect in gold? Here are the analyst comments…
FXTM senior research analyst: Gold price seems to be gaining strength from a weak dollar
The gold price once again climbed above the key $1,800 level on the back of a weaker dollar as investors looked to the minutes of the Federal Reserve’s June meeting to learn more about the policy decision. Spot gold hit $1,808, its highest level since June 17. US gold futures 1%. It rose by 2 to $1,805. FXTM senior research analyst Lukman Otunuga commented on the markets and said:
Gold seems to be gaining strength from a weak dollar. While last week’s mixed employment information has somewhat dampened interest rate hike concerns, these fluctuations could be rekindled by economic information pointing to higher power costs and rising inflationary pressures.
Ricardo Evangelista: Gold could rise further “provided there is no major change in the tone of the Fed minutes to be released”
The dollar index fell 0.1%, away from a three-month high last week, making gold cheaper for other currency holders. Friday’s information showed US companies hired the most workers in 10 months in June, but the unemployment rate rose. This information calmed some concerns about an earlier-than-expected policy tightening and helped gold’s 0.4% weekly gain.
Ricardo Evangelista, senior analyst at ActivTrades, said gold could rise further “provided there is no major change in the tone of the FED minutes to be released.” Ricardo Evangelista also added that risk appetite will be valuable in determining investors’ sensitivity to gold, as the market is lively and this does not support bullion.
The focus of this week is the minutes of the last meeting of the FED…
This week’s focus is on the minutes of the Fed’s last meeting on Wednesday, following a hawkish trend last month in which the US central bank predicted that policymakers will begin raising interest rates in 2023, sending gold prices below the $1,800 mark. Cryptocoin. com, higher interest rates increase the opportunity cost of holding non-interest-paying bullion.
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