Gold ended up 0.3% both on the month and the day, among many other headlines that will soon be forgotten.
Gold’s potential moves to $1,900 if the dollar remained weak was probably the bigger news, but there didn’t seem to be much celebration of those developments as well.
The New York Comex settled gold futures at $1,818 an ounce on Wednesday, an increase of $5.50 from the July settlement.
The yellow metal has been unable to break above July’s $1,834, which is its immediate hurdle
In spite of the Fed’s message on Friday, tapering will likely happen this year, even if not as soon as September. Whether linked to tapering or not, rate hikes will follow soon.
Despite the recent upward trend for the yellow metal, it’s not looking too promising in the medium term. Is that going to hinder it around $1,833 this time around as well?
In addition to poor US data, a continuing surge of delta claims would give it some real upside potential above here.
When prices cross $1,833, traders may start looking towards $1,900 an ounce during the later part of Q3. This might seem a bit ambitious now, but things have changed a lot recently. There is no telling what lies ahead, starting with the jobs report on Friday.
Despite this, many analysts predict gold’s price to decline in the years to come. A strong dollar, tapering by the Fed, and a post-pandemic recovery will all contribute to the metal’s decline, which will reach $1,700 by year-end and continue through 2022.
As equity markets continued to rise, investors shunned bullion-backed exchange-traded funds. Over the past year, gold-backed holdings have fallen by 8.5% globally
This article was originally posted on FX Empire
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