Hopes remain for next year
Spherical Despite the risks in the financial market, gold failed to become an ‘investor’s refuge’ and fell to its lowest level in two months. The spot price of gold closed at $1,848 on Friday, even surpassing the critical support of $1,880 an ounce. This is how September ended, which started at $1,939, with a loss of 4.7 percent ($91). Therefore, it recorded the largest monthly drop since February, approximately $91. The ounce of gold has regained all of its gains since the beginning of the year. The price of an ounce of gold last rose to $2,085 on May 4, hitting a year’s high. According to commodity market experts, the continued rise of the dollar has put pressure on the precious metal.
CHINESE INFLUENCE CAN SUPPORT
As a result of the US Federal Reserve (Fed) continuing its hawkish policy for some time, the yields of the dollar and 10-year Treasury bonds experienced the largest increase in the last year in the third quarter. According to experts, if the downtrend continues and the support at 1,830 is broken, the price may fall to $1,800.
Matt Simpson, senior analyst at UCity Index, said that for gold to rise above $1,900, the dollar and bond yields must weaken, and this may be possible especially with weak inflation established and lower inflation rates. aggressive forecasts from the Federal Reserve. Simpson said that doesn’t seem likely at this time. Anuj Gupta, head of commodities and currencies at HDFC Securities, said the ongoing real estate concern in China may also support gold prices as investors are expected to shift money from real estate to other safe havens, including gold. .
Despite the risks, it could not be a safe haven.
USA Sugandha Sachdeva, chief strategist at Acme Investment Advisors, stated that even the government shutdown could not provide continued support to gold and commented: “Surprisingly, gold could not attract safe haven demand even in an environment where aversion prevailed. to risk in financial markets”. Recently, gold prices have been mainly affected by real interest rates. As a long-term investment, gold looks positive, but in the very short term it usually brings nothing.