The price of gold has declined due to the hawkish statements of the Fed and according to the analyst, the price may technically drop to $ 1,758 / ounce. Gold prices slid on Thursday as investors expected the Federal Reserve to cut bond purchases faster to combat rising inflation. Details Cryptocoin. com
at . Considering that the forecasts of analysts are not exact, we recommend that investors do their own research before investing.
Analysts’ gold price predictions
Spot gold is 0% as of Thursday morning. It fell 3 to $1,777.87 an ounce. U.S. gold futures fell 0.3 percent to $1,778.10. Fed Chairman Jerome Powell said in congressional testimony Wednesday that the central bank should be prepared to respond to the possibility that inflation won’t fall in the second half of 2022. Powell also said he would consider cutting bond purchases faster at the Fed’s two-day meeting, which will begin on December 14.
Stephen Innes, managing partner at SPI Asset Management, said: “The more hawkish Powell rhetoric may eclipse the prospect of an Omicron virus-driven rise underneath, at least until Friday’s report on nonfarm payrolls.” The US nonfarm payrolls report could affect the Fed’s interest rate stance. The ADP National employment report showed private payrolls on Wednesday increased 534,000 jobs in November. Spot gold is still targeting $1,758 an ounce as it broke deeply below the $1,780 support and broke the ascending trendline, according to Reuters technical analyst Wang Tao. The price of an ounce of spot silver is 0%. Up 5 to $22.42, platinum 0%. It was up 7 to $940.09. Gold is often considered an inflation hedge, but the reduced stimulus and interest rate hikes increase yields on government bonds, turning it into a higher opportunity cost of holding the non-interest-paying bullion.
