Every day, we keep an eye on the macroeconomic situation in the world so that to tell you about the most significant events and their impact on gold prices. Learn all the details in our weekly report.
On Tuesday 25th, gold prices touched $1,251.
“Gold continues to attract buyers on the back of a weaker dollar and the increasing pessimism that the tax reform and infrastructure spending plans of the Trump administration are in doubt... Metals are not likely to rampage higher, unless a catalyst such as an equity meltdown or political event develop.”
Peter Hug from Kitco Metals
Mr Hug added that the dynamics looks uncertain and gold’s next target is $1,268.
On Wednesday 26th, gold positions strengthened at $1,260 due to the recent positive data from the survey of the Federal Reserve Bank of Richmond. Moreover, the Fed left the interest rate unchanged at around 1-1.25%, foreseeing a decline in inflation. Federal Reserve experts believe that risks are balanced and expect the growth of 2%.
Gold’s perforamnce on Thursday 27th, was influenced by another Fed’s statement. Many analysts regarded it as not rigid enough and suggested that the regulator did not form its future intentions clearly. As a result, gold prices ranged from $1,264 to $1,258.
“We expect new political initiatives this fall: more details on reducing the balance and another rate hike. The consensus is that the Fed’s July meeting will not be relevant for the dollar, and recent movements have largely been driven by other issues, such as the ECB, received data and risky sentiment.”
Bank of America Merrill Lynch FX Strategy Research
On Friday 28th, the dollar continued to decline, raising the price of gold to $1,269. The value of the US currency was influenced by the Fed's statements about inflation in the US allowing gold prices to reach their peak since mid-June.
The factor that contributed to the growth of gold is the demand for this precious metal in India. The Ministry of Commerce and Industry of India recommended lowering the import duty on gold. Since this country is the largest consumer of gold, an increase in demand will lead to a serious price enhancing.
"This will be one of the main recommendations of the Ministry in regard to the budget."
Secretary of Ministry of Commerce and Industry of India Manoj Dwivedi
On Monday 31th, the price of gold stopped at $1,267; analysts predict further growth of the yellow metal this week.
The "GFMS Gold Survey 2017 - H1 Update & Outlook" reports an increase in the demand for gold. In the second half of 2017, it increased by 163 tons and amounted to 957 tons. A special role was played by the Central Banks and the strengthened demand for jewelry.
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