Gold price held above $1,800 on Monday as its increased appeal amid slightly weakening US Treasury yields was offset by the dollar’s rise. Also, the rise of the dollar index has made the precious metal more expensive for holders of other currencies. So what will you see now? Cryptocoin. com
As , we convey the comments of analysts…
Will the gold price continue to struggle?
An ounce of gold, which changed hands at around $1,800 last week, is currently at $1,807. Benchmark US Treasury bond yields pulled down from the previous session’s high in more than a week, lowering the opportunity cost of gold. The dollar index (DXY) rose from its weakest level in nearly a week, making dollar-priced gold less attractive to non-US currency holders.
OANDA senior market analyst Jeffrey Halley said, “Gold faces resistance just above $1,815 and if the recent history shows something, gold will continue to struggle to sustain gains at these levels unless the US dollar drops sharply this week.” said. “What’s going on with inflation and the US Federal Reserve’s reaction to it is the main catalyst that makes it difficult to find directional momentum,” said DailyFX currency strategist Ilya Spivak. However, while this week has been generally calm, Spivak said, “the current sensitivity to low liquidity is making more pronounced, as weaker markets will lead to more tense price action if anything.”