Gold rallied above $1,860 at the weekend, staying at a five-month high. With the markets opening tomorrow, the possibility of a pause or a continuation of the rise in the precious metal was discussed by analysts. Here are the opinions of gold analysts…
What will affect the gold price? Here are the comments of 2 analysts
According to CMC Markets UK chief market analyst Michael Hewson, a combination of several factors is behind the rise in gold prices. However, he thinks that the upward momentum in the precious metal may not continue as the US Treasury yields continue to rise. He adds that metal investors will make some profits after really solid gains in this process. Increasing the opportunity cost of gold, the US 10-year benchmark bond yields remained above 1.5 percent, while the dollar index rose to its highest level since July 2020. While the dollar’s rally has generally lowered gold, it has largely ignored the rally in the US currency over the past few days as US consumer prices jumped sharply in October.
Commerzbank analyst Daniel Briesemann said, “Gold has improved its reputation as a store of value, especially after high inflation data from the US, and this will provide further support.” Cryptocoin. com
As we reported , the sharp rise in inflation has also fueled fears that the Federal Reserve may raise interest rates sooner than expected. “(But) the Fed tightening monetary policy here from this month has not had such a strong effect on gold prices,” Briesemann said.