It is a matter of curiosity which direction will be for gold prices. Because there is an agreement on the debt limit in America. This is why expectations about the value of the yellow metal come to the fore. Let’s take a look at what analysts have to say about the prospects for Gold.
Gold prices await these developments
Kitco analyst Anna Golubova says market expectations are at $1,950. Accordingly, a rate hike in June is highly likely. Also, the debt limit agreement is expected to be voted on in Congress. On the other hand, Brian Martin, head of global economy at ANZ, makes a statement on the subject. Accordingly, Martin said that the debt limit issue was not over until Congress accepted the deal. In addition to debt limit issues, Martin also looks at the Fed’s decision for the gold price. Comment as follows:
“Gold fell last week amid signs of resistance in the US economy. Inflation also remains stubbornly high. This may cause the Fed to maintain a tighter monetary policy.”
On the other hand, according to the CME FedWatch Tool, there are expectations for a rate hike in the markets for the 13-13 June meeting. Accordingly, a new 60 percent 25 basis point increase decision will be made. On the other hand, 40% think that interest rate hikes will be stopped. “The probability of the Fed’s rate hike in June will be shaped by the upcoming US data,” says Chris Weston, Pepperstone’s director of research. The next important data is non-farm payrolls, which will be released on Friday. Market consensus expects 180,000 positions to be added in May, after 253,000 in April. All these will be important indicators for gold prices.
Prospects for gold
Gold prices hit their lowest level since March 17. Afterwards, it increased by 0.6% to $1,954. U.S. gold futures were up 0.49% to $1,954. The dollar fell 0.2% from its 10-week high. This made bullion cheaper for holders of other currencies. Ole Hansen, head of commodities strategy at Saxo Bank, said: “The dollar is coming back, thus supporting gold, which has already attracted offers after it managed to find support around $1,933.” said. Hansen noted that while previous concerns about the US debt limit agreement have bolstered prices, the repricing of the Fed’s rate hike path has kept the gold under pressure.
Michael Langford, director of corporate consulting firm AirGuide, points to later in the year. Here’s what he says about gold prices:
If a more dovish approach is adopted in the future, this will mean that there may be some easing in interest rates. Therefore, there will be some rise in stocks. Ultimately, this will reduce investors’ desire to hold gold against riskier asset classes.
cryptocoin.com OCBC FX strategist Christopher Wong, whose views we have previously given, points out that the near-term outlook for gold prices seems fragile. Wong says prices could move towards $1,892 if they fail to rise above $1,940 on Tuesday.
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