Spot gold is currently hovering at multi-month highs around $1870. Gold will mainly look at developments related to the Fed this week. Cryptocoin. com
As , we would like to look at the expected price levels in the coming period.
A drop below $1,860 during Asia Pacific trading hours on Monday was in good demand. As gold continues to benefit from banks’ bullish comments, spot prices are winking at multi-month highs of $1,870 reached last week as Goldman Sachs predicts the precious metal will return to $2,000. Technically speaking, the gold picture looks bullish, according to analyst Joel Frank. If the precious metal can break the resistance at $1870, its next move will likely be towards $1900.
The yield of the US 10-year TIPS is currently around -1.17% and that of Germany (10-year bond yield due to inflation) is currently below -2.0%. Real yields in developed markets continue to be close to record lows. Whether central banks make a dovish policy mistake or not, gold is making a big profit as lower real returns reduce the opportunity cost of holding gold. US real yields are trading with a slight downside, which has helped the spot metal bounce off its previous lows.
what will happen next ?
For precious metals like gold next week, the main themes are all about the Fed; US President Joe Biden’s decision on who to nominate as the next Fed President may be announced. In addition, many Fed policymakers will speak publicly. Markets will adjust to any change in the tone of inflation after last week’s upside CPI surprise. The hawkish sentiment from FOMC members could pose a challenge to spot gold prices, according to the analyst.