The beginning of last week showed low gold prices, but then they rose reaching their highest since March, 6th. Experts also found enough evidence to forecast that the price of gold will be pushed even higher very soon.
Which events have influenced the gold market during last week?
On Tuesday, 14th, the Federal Reserve confirmed its decision on raising the interest rates. Gold was priced at $1,207 per ounce that day as inflation rose and the US dollar went stronger. On March, 15th, gold prices found themselves under pressure due to that decision.
Even though gold prices held below $1,200 per ounce, experts from the German financial services group Commerzbank affirmed that gold prices will “gain in the end once the rate hike had been implemented."
On the other hand, and despite the concerns over the Eurozone elections, gold prices remained unchanged in euros at 1,128€ per ounce.
The next day, Thursday 16th, gold prices did change radically but for the good: they rose to $1,226. The Federal Reserve raised the US interest rates just as expected, but the euro strengthened against the dollar.
Daniel Hynes, ANZ analyst, focused his words on the Eurozone to forecast even higher gold prices: "The market will be looking at the French election coming up relatively soon. However, we would need to see the far right in particular really gather strong resolve from those elections to see gold prices being pushed even higher."
Gold prices held steady on Friday, March 17th. Jiang Shu, chief analyst at Shandong Gold Group, said that the election in Holland had calmed the concerns over political risks in Europe. That is why gold's price remained unchanged at $1,226 per ounce.
On Monday, 20th the price of gold posted its biggest gain in two weeks with $1,234 per ounce. This rise in prices has taken place after the US Federal Reserve reviewed its policy and the dollar declined to November lows.
Gold is right on the target of buyers as its price grows.
The whole world takes refuge on gold.