Today, gold futures show a positive trend against the backdrop of news that the US Federal Reserve does not intend to make changes in the level of interest rates. The fact that a soft monetary policy should last until 2022, which of course is quite a long time, was especially important for the precious metals market. Reports that there has been a jump in the growth of patients with coronavirus infection in America added fuel to the fire, which has not happened for about five weeks. This may be evidence that a new wave of COVID-19 is covering the world.
Such conditions for gold are becoming more than favorable. Metal responds positively to statements by the Fed chief that the central bank is ready to take any steps that contribute to maintaining the country's economy. Moreover, the term for such a soft policy can be far from short. It is already clear today that the base interest rate will remain at its extremely low values until 2022. The central bank also supported this decision by expressing readiness to not change the current volume of bond purchases at the moment.
In general, the cost of gold was able to increase by 14% over the current year. This was primarily due to the quarantine regime against the backdrop of the COVID-19 pandemic.
According to the Organization for Economic Co-operation and Development, the global average drop in GDP can reach 6%. This is a lot without the forecasts presented earlier by the World Bank. According to his preliminary data, the reduction should be 5.2%. However, it is now clear that the numbers will be adjusted in a negative direction, especially since there are already signs of a recurrence of a pandemic in the United States.
However, such a scenario is beneficial for gold, since a soft monetary policy puts pressure on the real incomes of the US population. They begin to fall, especially in the long run, which makes the precious metal more attractive to investors in terms of profit.
Today, gold futures on the trading floor in New York have become 1.7% higher in value and reached $1,741.40 per troy ounce. Support for the precious metal is at around $1,671.70 per troy ounce, and resistance is at the level of $1,749.40 per troy ounce.
The Goldman Sachs Group Inc. released its traditional forecast for an increase in the value of the gold bar, which reflected the dynamics of up to $1,800 per troy ounce. The precious metal can achieve this result within the next twelve months. It should be noted that this is a very positive forecast, since gold could rise to the level of $1,788.80 per troy ounce by the beginning of the current calendar year.
Silver futures for delivery in July today went down: they fell 1.87% and began to trade in the region of $18.128 per troy ounce.
Copper futures for July delivery also turned out to be negative: they began to cost 1.49% less, which sent them to the level of $2.638 per pound.
