As the dollar clings to near a one-year high, the bearish pressure on gold is coming to an end, according to one analyst. Gold prices slumped on Monday after rising dollar pressure on bets that the Federal Reserve won’t delay its bond-buying cut, even as stagflation expectations capped losses in hedging bullion. Gold opened Tuesday near $1,760 an ounce and then rose higher. So, what levels will investors see now?
What are the main factors in the price movement of gold?
“The dollar is the main factor,” said Edward Moya, senior market analyst at OANDA, however, noting the sluggish price action. Moya added that the dollar’s dominance may last until the Fed announces a reduction in bond buying, but “we are approaching a peak where the downward pressure on gold is beginning to end and gold can finally stabilize and eventually regain its historically longer bullish trend.”
The dollar rose 0.3 percent, hurting gold’s attractiveness for holders of other currencies. cryptocoin.com As we have also reported, bullion has been trading at high levels since September 22. Support for gold “could come from some people who think gold is the best option as inflation rises and we’re currently experiencing stagflation,” said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.
What do gold futures point to?
Open interest to gold futures markets increased by just 441 contracts Monday, adding to the previous small daily structure, according to flash data from CME Group. Instead, the volume extended the volatility for another day, down by about 130.5k contracts. Gold limited to $1,800
Gold prices remained in a consolidation mood at the beginning of the week and drew a negative session amid a small rise in open interest. So far, the precious metal’s prices are currently seen at $1,750 and $1,780 per ounce, while the key $1,800 level continues to attract bulls, according to analyst Pablo Piovano. Meanwhile, concerns about high inflation coupled with stagnating economic growth have pushed global stocks down amid rising oil prices.
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, assets or services 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.