Gold prices were flat on Tuesday as appetite for riskier assets returned as the dollar regained some ground and investors outstripped the economic risks posed by the Omicron coronavirus variant. Spot gold price rose 0.35% to $1,795 at the time of writing, while US gold futures were up 0.3% to $1,794 at the time of writing. Opinions and forecasts of analysts who interpret the developments in the gold market. Cryptocoin. com we have compiled it for its readers.
“The $1,800 level remains an important pivot point for gold prices”
Phillip Streible, chief market strategist at Blue Line Futures in Chicago, states that after yesterday’s losses in US stocks, there is a risk of a rebound, and that the dollar has recovered with the US Treasury interest rates, emphasizing that all of them put some pressure on gold. The strategist continues by making the following statement:
However, as they worry about uncertainties, including the economic blow from Covid-19, people are buying whatever dip they can get, and the $1,800 level remains an important pivot point for gold.
Meanwhile, the US dollar recouped its overnight losses as the risk sentiment partially rebounded after a sell-off in global markets. Exinity chief market analyst Han Tan shares:
However, if nominal interest rates remain under pressure while inflation expectations stubbornly rise, the precious metal could catch new offers in 2022.
Jeffrey Halley: Gold investors do not tolerate any kind of loss
Bullion is often considered a hedge against large increases in consumer prices. However, increases in interest rates, while curbing inflationary pressures, may also reduce the attractiveness of non-yielding gold. However, Jeffrey Halley, senior market analyst at OANDA, comments:
Gold traders do not tolerate losses of any kind and lack the momentum to exit the current range-bound trade, as evidenced by recent rapid pullbacks on rallies above $1,800.
In other precious metals, spot silver was up 1.2% to $22.50 and palladium was up 2.6% to $1,794.86, while platinum was steady at $932. Palladium could benefit from pent-up auto demand expectations, says Bob Haberkorn, senior market strategist at RJO Futures.