Markets

Beneath the wind reversed

Gold is moving towards closing the third consecutive week with benefits, with the spread of the delta variant and the expectations that the dove monetary policy will continue.

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Gold followed a volatile course on Thursday after the Fed’s minutes indicated that policymakers needed more concrete data pointing to an economic recovery to reduce its asset purchase program.

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It was underlined that there was little concern about inflationary pressures in the minutes, in which some Fed members emphasized that the economy was still far from the aims. It was stated that the Fed should be ready to take action if risks to inflation materialize.

(mtag101702)

(mtag101702)

Optimistic and pessimistic scenario for gold

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The World Gold Board analyzed the course of gold prices for 2021 with different scenarios in its semi-annual research report.

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Calculating how much gold can yield in 2021 according to the scenarios of Oxford Economics, the institution expects gold to close 2021 with a 1 percent benefit in a recovery that will be experienced as consumers focus on spending by spoiling their savings in the worst scenario for gold.

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Expecting the price of the precious metal to rise by more than 11 percent in 2021 in the best gold scenario, where the epidemic is prolonged with the emergence of new variants of the coronavirus, the board thinks that in the average scenario where the recovery is accelerating, gold will yield around 6 percent.

(mtag101702)

(mtag101702)

Stating that the performance of gold depends on high interest rates and vaccination campaigns, the board said that this is in line with the historical relevance of gold, but they expect central banks to be very cautious and slow in tightening cash.

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Stating that the economic environment with ultra-low interest rates also created structural changes, the board stated that investors add more risky assets to their portfolios for higher returns and that they may have to review their risk management strategies in case of financial tightening.

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Ounce gold price

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The ounce of gold, which climbed to $ 1,815 with a rapid rise on Tuesday, was then withdrawn below $ 1,800 again. After the announcement of the Fed minutes, the ounce of gold, which is above $ 1,800, hovers around $ 1,803.

(mtag101702)

(mtag101702)

Gold price per gram

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Gram gold, which recorded a steady rise by following the global gold prices and the upward movement in the Dollar / TL in April and May, reached 527 TL at the beginning of June and saw the top of this year. Following the decline in global gold prices, gram gold has been in a narrow price range since mid-June.

(mtag101702)

(mtag101702)

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