Current Forecasts For Gold Prices From Senior Analysts!

Current forecasts for gold prices continue to come. It is expected that the Federal Reserve will continue its aggressive monetary policies throughout the summer. That’s why the gold market is stuck below $1,950 an ounce. But price action has meaning, according to one market strategist. It’s a factor that traders should look at when creating a core position underneath. cryptocoin.com Let’s look at the details.

Interest rate hikes are a negative factor for gold prices

Kristina Hooper, chief global market strategist of Invesco, made statements about gold prices. Markets expect the Federal Reserve to raise interest rates another 25 basis points this month. Accordingly, according to Hooper, this indicates that gold is facing a challenging environment. However, gold continues to be an important strategic asset to have.

Investors are looking for opportunities to protect themselves against increasing risks in the market. Hooper states that this means that gold will continue to be well supported in the near term. US economic activity has been relatively resilient to the Fed’s most aggressive tightening cycle in 40 years. But Hooper added that the excess savings driving consumer demand this year are starting to dry up. Hooper said economists still do not fully understand the lagged effect of rising interest rates on the economy.

Growth prospects

Hooper also emphasizes that Invesco expects growth to slow. However, he states that the US is on the way to avoid a deep and prolonged recession. On the other hand, he added that there are still risks that conditions could worsen.

Hooper said the threat of recession, rising geopolitical risks and the trend of wider de-dollarization are just a few of the factors that could push gold prices back to $2,000 an ounce by the end of the year. He added that even at current prices, gold is still very valuable. “There are a number of catalysts that could drive prices up over the next year,” Hooper said. So gold seems pretty expensive. However, it doesn’t matter in the short term,” he says.

Rise in prices

The fall in inflation brought a new breath to the gold market. Accordingly, gold prices reached the highest level in the last four weeks. Accordingly, it tested the first resistance at $1,940 per ounce. The rise in gold prices was due to a development. It comes Monday after the Federal Reserve of New York announced in its June Consumer Expectations Survey that one-year inflation had been cut to 3.8% from the 4.1% reported in May. This was the weakest inflation figure since April 2021.

Meanwhile, economists point out a factor that contributes significantly to inflation. Accordingly, they also stated that used car prices dropped sharply in May. Prices fell 10.3%, according to the Manheim Used Car Value Index. Accordingly, it experienced one of the biggest declines on record. The index also shows that used car prices have fallen for the past three months. Some economists and market analysts point out that the supply of used vehicles continues. They say it’s a surprising signal of deflation. However, as demand weakens, the supply of new vehicles for sale is increasing.

All eyes on the data

All eyes are now on Wednesday’s Consumer Price Index. According to consensus forecasts, economists expect annual consumer prices to rise to 3.1% from the 4% reported in May. Weak inflation data does not have an immediate impact on interest rate expectations. The CME FedWatch Tool shows that markets continue to expect a 25bps increase from the Federal Reserve at the end of this month.

But some analysts said weak inflation could mean July’s move could be the last of this tightening cycle. Expectations that the Federal Reserve’s monetary policy has peaked have caused 10-year bond yields to drop below 4%. At the same time, significant weakness is seen in the US Dollar Index.

Dollar index and gold prices

USD Index dipped below support at 102. It is currently trading at a two-month low of 101,833 points. At the same time, gold futures contracts for August, which fell from session highs, were last trading at $1,935.80 an ounce, up 0.25% on the day. Ole Hansen, head of commodity strategy at Saxo Bank, said in a research note that gold prices are trading at their 21-day moving average. Hansen added that if prices can hold above $1,939 an ounce, it could signal a reversal to the main resistance at $1,958.

Hansen said that for gold to gain new bullish momentum, it must rise above $1,960. Darin Newsom, senior market analyst at Barchart.com, said he expects renewed buying interest in the near term if prices can hold above $1,942 an ounce. Craig Erlam, senior UK and European market analyst at OANDA, said it’s still unclear whether gold is ready to break higher.

“It looks like the gold bulls are a little more confident,” Erlam wrote in a note on Tuesday. However, $1,940, which was a significant support area in late May and first half of June, is still a test. After such a strong pullback from May highs, we may be seeing a corrective action. But tomorrow, another strong inflation figure may pull it down once again.” says.

Inflationary pressures

Inflationary pressures have decreased. But some analysts said the threat of higher consumer prices has not completely gone away. Michele Schneider, director of trade education and research at MarketGauge, makes this point. She states that she sees current inflation talks as nothing more than numbers calculations. She also emphasizes that she does not reflect real-world conditions, she. Schneider states that oil prices continue to be traded at the highest level of the last month.

Schneider added that while consumer prices in the US are falling, global inflation pressures remain high. He also highlighted wage growth in the UK as a sign that global inflation remains a cause for concern. The Office for National Statistics on Tuesday announced that basic wages in the UK rose by 7.3%. The report noted that this was the strongest increase recorded in private sector wage growth outside the pandemic period of 7.7%.

Gold prices and geopolitical uncertainties

In addition to inflation, Schneider draws attention to the high level of geopolitical uncertainty. That’s why gold remains an attractive safe-haven asset, he said. Schneider said gold prices could rise even higher as NATO allies attend a summit in Sweden. Gold rallied on Tuesday. However, Schneider said he wants silver to participate in the rally so that the gains are sustainable. Silver is seeing modest selling pressure. Accordingly, silver futures for September delivery fell 0.13% on the day. It trades at $23,315 an ounce.

Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow on. Telegram And YouTube join our channel!