The gold price has strengthened slightly

 

The price of gold strengthened slightly ahead of the publication of employment data in the US and reached the level of $ 1,775 per ounce. The precious metal rose in price along with the fall in the dollar and the yield on Treasury bonds, equalizing some of the losses of the previous month. In June, gold posted its biggest monthly loss since November 2016, as an unexpected hawkish shift from the Fed reduced the metal's appeal.

Gold prices are still in a downtrend and the market is now experiencing a corrective rebound, driven by bargains on the back of a weaker dollar and US Treasury yields. The asset fell to its lowest level since mid-April ahead of yesterday's Conference Board Consumer Confidence Index report for June.

Market participants will be paying close attention to Friday's non-farm employment data for clues as to the timing of the US monetary policy shift. After the Fed indicated that at least two 0.25% interest rate hikes are likely to occur by the end of 2023, the dollar began to rally and accelerate for three consecutive days for the first time since early March, adding 1.9% gains. Almost two weeks later, even with added volatility, the dollar retained most of that gain and is still up 1.7% since the Fed meeting. Strong employment market data is expected today, and the US currency may strengthen even more.

In our forecast, we assume a decline in the price of gold to the support levels of 1750, 1725, and 1700 dollars per ounce.

 

 

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