Gold prices rose on Tuesday as investors opted for the safe-haven metal amid concerns over the Russia-Ukraine dispute and eagerly await a series of economic data and central bank meetings to decide their next move. Opinions and evaluations of analysts who interpret the market cryptocoin.com compiled for our readers.
Ilya Spivak: US NFP data this week will be important for yellow metal
Jigar Trivedi, commodities analyst at Mumbai-based broker Anand Rathi Shares, states that investment demand has increased slightly over the past week due to geopolitical tensions, which has bolstered gold. According to the analyst, the expected downside US ISM Manufacturing PMI and the dollar’s decline from several-month highs also provide a basis for gold to be a safe-haven.
British Prime Minister Boris Johnson will visit Kiev on Tuesday as part of the West’s diplomatic efforts to stop a possible Russian invasion, and Moscow says there is no evidence it planned it. The holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose to 1,017.75 tons on Monday.
That said, DailyFX currency strategist Ilya Spivak says U.S. nonfarm payrolls data this week is significant as any signs of weak hiring and strong wage growth could significantly strengthen market expectations from a hawkish Fed, thereby pressing gold to slide lower. . U.S. payrolls are expected to show 153,000 jobs in January, up from 199,000 in December, with the unemployment rate holding steady at 3.9%, according to a Reuters poll.
“The fact of five Fed rate hikes this year scared the gold market”
Atlanta Fed President Raphael Bostic said in an interview with the Financial Times that a 50 basis point increase would be warranted if inflation remains stubbornly high. Bob Haberkorn, senior market strategist at RJO Futures, says that while the dollar has risen against other currencies on the back of the Fed’s rate hike expectations, other central banks have not yet fully started to act, creating problems for gold. Also, Bob Haberkorn adds that the fact of five Fed rate hikes this year probably scared the gold market a little bit and that gold is competing with bonds because it doesn’t pay interest.
According to CMC Markets UK chief market analyst Michael Hewson, gold prices rose on Monday, but have been down for this month, in part due to the pressure from the rise in Treasury yields over the past few months. Still, the analyst states that prices are rebounding after falling to roughly six-week lows at the end of last week.
Pablo Piovano: Gold remains supported around $1,780
The open interest in the gold futures markets extended the downtrend for the fourth consecutive session on Monday, this time up by around 4.2K contracts, given flash data from CME Group. Along the same lines, volume has dropped for the third consecutive session, now at around 105.1k contracts.
Market analyst Pablo Piovano says gold prices recovered modestly on Monday after lows near $1,780 at the end of last week. However, the corrective was in the midst of declining open interest and volume on the upside, indicating that a higher move may not be convincing. Meanwhile, the analyst emphasizes that the bears’ attempts remain well under control around the $1,780 region.
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.