Tag: gold price projection

Gold Price Outlook Remains Mired by Broader Recovery in US Yields

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GOLD TALKING POINTS

The price of gold attempts to retrace the decline from the beginning of March as the US 10-Year Treasury yield pulls back from a fresh yearly high (1.62%), but key market themes may keep the precious mental under pressure as the Federal Reserve appears to be in no rush to alter the path for monetary policy.

FUNDAMENTAL FORECAST FOR GOLD: BEARISH

The price of gold bounces back from a fresh weekly low ($1688) as the initial reaction to the 379K rise in US Non-Farm Payrolls (NFP) dissipates, and the recent weakness in longer-dated Treasury yields may lead to a larger rebound in the precious metal even as the Federal Open Market Committee (FOMC) maintains a dovish forward guidance.

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Gold Slides to 9-month Low as Rising Bond Yields, Dollar Dim Appeal

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Gold slid as much as 2% to its lowest in nearly nine months on Wednesday as elevated U.S. Treasury yields and a stronger dollar hammered the metal’s appeal.

Spot gold was down 1.2% at $1,718.09 per ounce by 11:56 a.m. ET (1656 GMT), after falling to its lowest since June 2020 at $1,701.40 earlier in the session. U.S. gold futures lost 0.9% to $1,718.80.

”As real rates continue to rise, that’s challenging gold. The rates markets are also adding pressure on valuations for all asset classes, and as a result, gold is a casualty,” said TD Securities commodity strategist Daniel Ghali.

Benchmark U.S. 10-year Treasury yields crept back towards a one-year peak reached last week, while the dollar rose.

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WGC Unveils Social Responsibility Report by the Gold Industry

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According to the report, the pandemic has had an impact on businesses across the globe.

SEATTLE (Scrap Monster): The Gold Responsibility & Paramount Mission” summit held in Beijing on November 6th provides social responsibility report by the gold industry on prevention and control during times of crisis. The report, prepared jointly by the China Gold Association, Shanghai Gold Exchange, World Gold Council and Sina Finance, focuses on the efforts undertaken by the Chinese gold industry in overcoming the difficulties of the time.

According to the report, the pandemic has had an impact on businesses across the globe. However, all major gold companies were holding fast to the front line of epidemic prevention and control. All these companies formulated and implemented anti-epidemic measures, which helped them to resume production in a timely and regulatory manner. Also, gold regulatory bodies and industry trade associations played leading role in mobilizing the entire industry back into action.

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Gold heading back to 1872 supports as European stocks tumble

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Yen and Dollar surges broadly as European stocks tumble sharp on the come back of coronavirus. At the moment, FTSE is down -1.77%> DAX is down -3.25%. CAC is down -3.07%. DOW future is also down nearly -500 pts.

Gold drops back below 1900 handle today, following the rally in Dollar. While it’s essentially still range bound, focus is back on 1872.85 support. Firm break there will suggest that whole corrective pattern from 2075.18 high is extending with another leg through 1848.39 low.

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Gold rebounds as Fed’s new inflation strategy boosts investor appetite

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The fallout from the US Fed’s new inflation strategy continued on Friday, with investors finding comfort that policy will remain accommodative. This saw the ANZ China Commodity Index ending the session up 0.2%. This capped off a positive week for commodities, with the CCI rising 0.6%. Industrial metals led the complex, with nickel and copper recording strong gains. Precious metals were also stronger, with gold rising 1.3% over the week. Crude oil gained, sending the energy sector higher. Bulk commodities ended the week lower, as iron ore fell. Agriculture was down over the course of the week.

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