Gold prices fell on the back of the rise in US producer prices (PPI) and the expectation for the US Federal Reserve (FED) meeting. So, what are the current predictions? cryptocoin.com We share the forecasts of 3 analysts for gold…
Where can gold prices go? Analysts explained
Gold slumped after a rise in US producer prices boosted expectations for an earlier-than-expected rate hike ahead of the Fed’s two-day meeting. US producer prices rose more-than-expected in November as supply constraints continued. This bolstered the experts’ view that inflation could remain uncomfortably high for a while. David Meger, director of metals trading at High Ridge Futures, said:
Producer prices were higher than expected, indicating continued inflation and gold is seen as an inflation hedge. But in reality, we see that hot inflation could mean faster rate hikes, the opposite. That’s why inflation is called a double-edged sword.
“Market participants will be watching closely the upcoming FOMC meeting to see how the central bank will respond to rising inflation, which will likely lead to greater price action,” said UBS analyst Giovanni Staunovo. The Fed will begin its two-day monetary policy meeting later in the day. It is expected to announce that it has completed its bond buying incentive earlier than previously reported. FXTM analyst Lukman Otunuga wrote in a note, “If the Fed steps up on tapering, it will be; “The dollar may penalize gold prices as yields and expectations of rate hikes rise,” he said.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Disclaimer: The articles and articles on Kriptokoin.com do not constitute investment advice. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, asset or service in this article.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.