The trading on the New York stock exchange COMEX on Tuesday, as well as the three previous sessions, ended with an increase for the yellow precious metal. The increase for the June gold contract was 0.8%, which is equal to $14.20 in monetary terms. Therefore, the price per ounce reached the level of $1,743.
In general, gold prices have increased by 3.4% over the last 4 sessions. The precious metal has not shown such sharp positive dynamics for almost 2 months, namely since February 10. There are two key factors that affect its pricing more than others and help the classic asset to achieve stable growth and slight strength.
ActivTrades analyst Carlo Alberto de Casa stated that we are at a current stage where gold is still showing a backlash in response to any movement in the US dollar and US Treasuries. But while the US currency is weakening, and the Treasury yield is declining, the quotes of the specified metal have sharply surged.
At the same time, the drawdown of the safe-haven asset will also be natural, if this week turns out to be favorable for the dollar and US treasury bonds. In this case, gold will have to become an outsider again and start losing in price, which was already predicted by experts.
Meanwhile, the Vice President of GoldMining Inc, Jeff Wright, commented that gold’s price has already reached the lower limits. He said that he remains optimistic about the long-term outlook for the metal, but the short-term forecasts are not so great. According to him, the price has hit the bottom yet.
Michael Armbruster, Managing Partner at Altavest, has a similar opinion. He is confident that the dynamics of US government bond yields, which are determined by inflation, will exert particularly strong pressure on gold pricing in the short term.
The expert believes that inflation data will indicate a rapid acceleration in the rate of growth in prices in the next few months. In this regard, gold will become much cheaper. Thus, we cannot rule out that its value may decline even below $ 1,600.
The analysis of the charts also indicates a possible decline in the yellow asset. Naim Aslam, Chief Market Analyst at AvaTrade, studied the precious metal quotes and concluded that an upward trend is not yet observed.
Gold has not yet managed to break through the 50-day moving average, which is currently at $1,772 per ounce. Based on this, we can expect a further pullback in the short and medium term.
This morning, the price of gold is declining correctively after a four-day rise. The June futures contract was trading at $1,738.15 earlier, being down by 0.28%. In monetary terms, the difference from the previous trading was $4.9. The price of silver also declined, falling by 0.51%. As of 05:40 Universal time, May futures were priced at $25,098 on COMEX.
The material has been provided by InstaForex Company – www.instaforex.com
🚀If you want to get a Forex Robot Coded as per your trading strategy but are unable to do so because of the high price for the Robot then you can take advantage of the CROWD FUNDING campaigns feature. ✔ These are some crowd funding campaigns for Forex Robots, which when completed can provide the very same Forex Robot to the participants at an average price of $5-$10 per participant. ✔ You either participate in one of the already listed campaigns or send us your Forex strategy : Submit Crowd Funding Campaign , for which you would like the Forex Robot to be coded. A Crowd Funding Campaign would then be started for the same . ✔ All you have to do later on is to share the campaign online with your friends to encourage more people to participate in the campaign.
As a result, each participant can get that Forex robot for just a campaign contribution of $5 (which is the minimum). Participants can back the campaign by anything above or equal to $5 to reach the funding goal to close the campaign.