Gold battles dollar currents, rising yields, stocks and crypto – .

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Gold battles dollar currents, rising yields, stocks and crypto – .


Gold undoubtedly swims against strong currents, which limit any bullish movement. Recently, it has successfully struggled to stay above $ 1,800 an ounce. On Monday like today, gold prices came close to testing the 100-day moving average, which currently stands at $ 1,792.10, and each time closed just above $ 1,800.

In the case of today’s intraday low of $ 1,794.30 for gold futures, it was the strength of the dollar in overseas trading last night that brought prices down to this higher. low. However, the dollar closed lower in New York trading, causing gold to return above $ 1,800. At 5:30 p.m. EST based on gold futures, the most active August 2021 Comex contract is pegged at $ 1,803.80, which is a net decrease of $ 7.50. Meanwhile, the dollar index broke off the highs of 93.19 reached last night and is currently trading at 92.84, which is a net decline of -0.015%.

Yields on 10-year Treasuries have gained 0.0710 or 5.87% and are currently pegged at 1.28%, creating another strong current that is dampening any bullish movement in gold.

It is also argued that investment dollars were flowing into the US stock markets today. The S&P 500 gained 0.82%, the Dow Jones gained 0.83% and the NASDAQ composite gained 0.92% in trading today.

Cryptocurrencies also showed big gains today, with Bitcoin Futures gaining 7.07% and Ethereum gaining 8.85%.

Investors are always looking to place their money in asset classes that will produce the best results. With strong US stock markets and the potential for cryptocurrencies to have found temporary support, it’s harder for gold prices to rise.

Market players await FOMC closing meeting on July 28

The future direction of gold prices could certainly be influenced by the next FOMC meeting, which begins July 27 and ends the next day when a statement is released and President Powell holds a press conference. The statement, as well as President Powell’s press conference, will reveal any changes in their current monetary policy.

Market players are also awaiting any announcement from the European Central Bank on Thursday. According to an article by James Hyerczyk in FX Empire, “Gold futures are down slightly on Wednesday, under pressure from a stronger US dollar ahead of the European Central Bank (ECB) announcements on Thursday, a further rise in US Treasury yields and growing demand for riskier assets, with US stock markets hovering slightly below record highs. Despite its earnings capping, the market appears to be supported by some surges in the safe haven metal amid concerns over an increase in COVID-19 cases. “

The fact that gold stays above $ 1,800 is bullish. Especially since we have seen the dollar appreciate, with 10-year bond yields and US equity markets both posting gains.

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Wishing you, as always, good exchanges and good health,

Warning: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not a solicitation to effect an exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and / or damage resulting from the use of this publication.

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