Strategy to sell today, predict a decrease then increase again
World gold prices continued to increase with spot gold increasing by 12.1 USD to 2,127.2 USD/ounce. Gold futures last traded at 2,136.4 USD/ounce, up 10.1 USD compared to yesterday morning.
World gold prices continue to surge as the market becomes increasingly certain that the US Federal Reserve (Fed) will loosen monetary policy in June after a series of weak economic reports.
TD Securities commodity strategist Bart Melek said that the main factor pushing gold higher this week is the expectation of the first interest rate cut. The market is increasingly confident that the Fed will soon make a easing decision. This expert predicts that, with such confidence, the world gold price could be pushed to 2,300 USD/ounce in the second quarter of this year.
Besides, safe haven demand due to concerns related to the conflict in the Middle East also strongly supported the yellow metal. Gold, often used as a safe store of value during times of political and financial instability, has increased by more than $300 since the start of the Israel-Hamas conflict.
This expert added that it would not be surprising if gold prices increased when the Fed discussed loosening monetary policy. However, this precious metal will surge even further when the first interest rate cuts are carried out.
Currently, the market is eagerly waiting to see what Fed Chairman Jerome Powell will say at his testimony before Congress this week to know more about the US interest rate roadmap. In addition, the February employment report scheduled to be released on Friday is also information that attracts investors' attention because this data can change market sentiment and push gold to a closer range. This.
According to the CME FedWatch tool, traders now see a 70% chance that the Fed will begin cutting interest rates in June.
World gold prices continue to surge as the market becomes increasingly certain that the US Federal Reserve (Fed) will loosen monetary policy in June after a series of weak economic reports.
TD Securities commodity strategist Bart Melek said that the main factor pushing gold higher this week is the expectation of the first interest rate cut. The market is increasingly confident that the Fed will soon make a easing decision. This expert predicts that, with such confidence, the world gold price could be pushed to 2,300 USD/ounce in the second quarter of this year.
Besides, safe haven demand due to concerns related to the conflict in the Middle East also strongly supported the yellow metal. Gold, often used as a safe store of value during times of political and financial instability, has increased by more than $300 since the start of the Israel-Hamas conflict.
This expert added that it would not be surprising if gold prices increased when the Fed discussed loosening monetary policy. However, this precious metal will surge even further when the first interest rate cuts are carried out.
Currently, the market is eagerly waiting to see what Fed Chairman Jerome Powell will say at his testimony before Congress this week to know more about the US interest rate roadmap. In addition, the February employment report scheduled to be released on Friday is also information that attracts investors' attention because this data can change market sentiment and push gold to a closer range. This.
According to the CME FedWatch tool, traders now see a 70% chance that the Fed will begin cutting interest rates in June.
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