According to data from the US Commodity Futures Trading Commission (CFTC); Expectations that the Federal Reserve will meet the threat of rising inflation with aggressive rate hikes are making investors hesitant to jump into the gold market. There are various expectations about gold prices. Cryptocoin. com we are conveying the details…
Analyst: Gold prices should be above $1,830
For the week ended Jan. 4, the CFTC’s report showed money managers cut their speculative gross long positions in Comex gold futures by 6,137 to 124,252. At the same time, open interest increased by 1,982 contracts to 44,744. Long positions opened in gold are at 79,508, relatively unchanged compared to the previous week. Analysts point out that the Fed’s upcoming interest rate hikes may limit gold prices in the near term. Markets are currently pricing in four rate hikes this year, with the first move coming in March, according to the CME FedWatch Tool. Commodity analysts at TD Securities used the following statements:
Investors have had a mixed response to the recent hawkish statements from the Federal Reserve and the acceleration of the worldwide epidemic, according to experts. On the one hand, the Fed’s ever-higher tone encouraged money managers to aggressively reduce their long-term exposure to gold. On the other hand, concerns about a global slowdown and possible hedging have caused speculators to firmly close their short positions.
Saxo Bank’s head of commodities strategy, Ole Hansen, said that real bond yields point to resilient strength in the gold market as real bond yields hit a six-month high. However, he added that gold needs to be held above $1,830 for a fresh rise.