After a progressive decrease last week, gold prices recovered at the very last moment to reach its highest value since May 1st. Forecasts are also positive.
How have experts described last week's performance of gold? What do they foresee in the short-term?
The week started with higher gold prices than last Monday's. On Tuesday 23rd, gold was priced at $1,260 an ounce as the world's stock markets skyrocketed and gold imports to India increased by 4-times from the same month last year.
On Wednesday 24th, the price of gold started its decrease slipping to $1,253 an ounce. Prices didn't fall only because the world's stock markets stood firm together with major government bond prices: the German financial services group Commerzbank stated that: “gold has fallen because rate hike expectations are rising. According to the Fed Fund Futures, the probability of a Fed rate hike in June is back at a good 80%.”
The gold price recovered a little bit on Thursday 25th back to $1,255 per ounce. That day was important for the LBMA because it launched its new Global Precious Metals Code: a code that “sets out the standards and best practices expected from participants in the global market for precious metals.” Paul Fisher, LBMA chairman, has described this code as “an important step forward to build greater trust, consistency and transparency throughout the market.”
Gold prices jumped above $1,265 per ounce on Friday 26th as the world's stock markets slipped, major government bond prices rose, and interest rates went down. Actually, gold traded at its highest dollar level since late April that day. Gold prices also rose in British pounds and euros to 1,131 EUR per ounce. Moreover, another note from Commerzbank assured that: “physical gold demand in the core demand countries has remained very robust of late.”
After the weekend, the value of gold reached its highest since May 1st: $1,269 an ounce. Monday 29th came heated by the political tensions surrounding the US President, which are providing further safe-haven support for gold. In fact, this is what forecasts read:
“Gold may climb to $1,276 per ounce.”
Reuters' technical analyst Wang Tao
“A weaker dollar, coupled with rising geopolitical tensions should keep the precious metal relatively buoyant. We remain friendly on gold and suspect that it will likely push higher over the course of the coming week.”
INTL FCStone's analyst Edward Meir.
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