Gold (XAU/USD) holds a low low near $1,802 on Monday. The reasons behind the recent pullback of the precious metal can be attributed to the reduced risk appetite in the market amid the coronavirus (COVID-19) burdens in the Asia-Pacific countries, according to experts. Other reasons include seeing the dollar, not gold, as a safe haven, and the US Federal Reserve’s indecision about its next moves. Meanwhile, analysts share gold price claims.
What has/may affect the price of gold?
According to experts, news about the Delta variant comes from England and Australia at the beginning of the developments that affect the gold price in the coming weeks. Gold started the day flat and continued at around $1,810 where it left off on Friday. But by mid-day, the truth was bearish and settled below $1,805. Cryptocoin. com
As we reported as , although the gold price increased to $ 1,832 on Friday, it ended the day at $ 1,810.
US Dollar Index (DXY) closed the week at 92.71. At the time of writing, it was at the level of 92.98, but it was above 93 in the morning. US Retail Sales unexpectedly rose in June as demand for goods remained strong. Robust information and shifts in interest rate expectations have contributed to the strengthening of the dollar in recent weeks, following the Federal Reserve’s earlier-than-expected hike in 2023 in June.
Speculative flows into expensive metals have remained finite, as investors are seeking transport for now and gold has no peer bearing advantage, experts say. In addition, the recent increase in worries about the spread of the Delta variant is hurting the risk appetite that may fall into the hands of both the gold price and the US dollar.
Gold price prediction from TD Securities analysts
TD Securities analysts said, “Despite the decline in real yields in the US, money managers increased their gold lengths only marginally. Indeed, gold prices are still struggling to stabilize despite the extremely positive price action in real returns that has pushed 10-year TIPS prices back to epidemic-period highs,” they said.
‘On the contrary, the price metal fails to break above the 200-day moving average (DMA). This highlights a sharp divergence in capital flows as pressures of higher inflation keep ‘breakevens’ high.
Meanwhile, according to the technical analysis of FXStreet analyst Ross Burland, falling below the $ 1,800 limit in the gold price may upset the bulls.