Zurich The gold market is likely to be significantly influenced by the central banks in the coming year as well. This is the assumption of the experts at the precious metal processor Heraeus. The interest rate policy of the US Federal Reserve determines the strength of the dollar and is therefore also the most important factor in the price of gold, says Henrik Marx, chief trader at Heraeus. “The direction of the dollar is critical to future gold gains.”
A mix of rising interest rates and falling inflation rates could weigh on the price of gold. But should the US Federal Reserve surprisingly slow the pace of its rate hikes or halt them altogether, the precious metal should benefit, says Marx: “As a result, the dollar could weaken and bond yields fall, which should support higher gold prices.”
The Heraeus experts give the mark of 1900 dollars per troy ounce (around 31.1 grams) as the highest value in the coming year. This corresponds to an upside potential of eight percent.
Read on now
Get access to this and every other article in the
Web and in our app free of charge for 4 weeks.
Continue
Read on now
Get access to this and every other article in the
Web and in our app free of charge for 4 weeks.
Continue