Gold Analyst: These Developments Will Determine The Price!

Gold futures rose on Wednesday, supported by the decline in US Treasuries and a weaker dollar. An ounce of gold is changing hands at $1,822 at the time of writing. Well, what other developments supported gold? Here are the details

Bond yields, dollar index, Jerome Powell: Developments affecting the gold price

U.S. Treasury yields fell on Wednesday ahead of Fed Leader Jerome Powell’s speech before Congress later in the day. The yield on the 10-year Treasury bond fell 1 basis point to 1.407. The yield on the 30-year Treasury bond fell 1 basis point to 2.026 percent. On the other hand, the US dollar fell against other currencies. According to many experts, the side of the dollar may be determined by Fed Leader Jerome Powell’s statement on Wednesday.

US government reports the biggest inflation jump in years

Inflation rose at the fastest pace in nearly 13 years in June, driven by the explosion in used-car costs and rising food and power prices, the US Department of Labor reported on Tuesday. The consumer price index rose 5.4 percent from the previous year, the biggest increase since August 2008, quickly before the worst financial crisis. Economists surveyed by Dow Jones expected a 5% profit. The CPI, which subtracts volatile food and power prices, rose 4.5 percent, the sharpest since September 1991, well above the 3.8 percent assumption.

Assumptions for gold from the analyst

FXEmpire analyst James Hyerczyk made a short-term claim. A Fed report released Friday, which Fed Leader Jerome Powell will present to Congress this week, reiterated the central bank’s position on the side that current inflationary pressure is “temporary,” according to the analyst. The analyst states that if Powell takes a tough stance on monetary policy, the US Treasury yields and the dollar will jump again, which may bring down gold prices.

On the other hand, he underlines that if Powell takes a stance that the current rising inflation is discontinuous, the gold price will be supported. For more gold news Cryptocoin. com “Analysts: Gold Price Will See These Levels in the Short, Medium and Long Term!” You can review the article.

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