Gold futures rose this morning, the reasons for which are the weakening of the US dollar, as well as the actions of the US Fed to continue the corporate bond purchases, which could help stabilize the US economy against the ongoing crises.
Such factors upped the gold futures for August delivery by 0.47% on the New York trading floor this morning, raising it to $ 1,735.40 per troy ounce. Support for precious metals settled at $ 1,706.20 per troy ounce, while resistance came around $ 1,754.90 per troy ounce.
The traditionally soft monetary policy of the central banks worldwide provided support to gold and raised its price in the charts, so many analysts are confident that the precious metal will be able to jump in value up to $ 1,800 per troy ounce in the very near future. It will be facilitated by a huge increase in liquidity caused by the decision of the central banks of many states, which will inevitably be followed by a reduction in forex rates. Market participants will most likely not wait for such a situation, so they will surely rush to resort to time-tested "safe haven" assets.
The US Fed was one of the first central banks to provide support for gold, after it decided to continue the repurchase of securities to improve the situation in the market affected by the coronavirus infection.
Following America was the Bank of Japan, which increased the volume of lending programs for companies that have faced cash shortages. Its total amount of lending is now up to $ 1 trillion, much higher than the previous value of $ 700 billion.
Of course, while the situation between the countries' economies looks similar, gold may not worry about its situation, as it is a means of hedging both inflation and the risks associated with the exchange rate.
In addition, the increase in physical volumes of precious metals further strengthens gold in the market, so to date, they have reached their highest values, once again proving the "safe haven" or protective status of the asset. When problems begin in the markets, gold comes to the fore and begins to be in great demand.
Thus, silver futures for July delivery rose in value by 0.74% today, sending the price to a value of $ 17.527 per troy ounce. The cost of palladium also increased by 2.15%, amounting to $ 1,948.48 per ounce. Platinum, meanwhile, remained virtually unchanged, consolidating in the range of $811.33 per ounce.
Copper futures for July delivery also upped 0.66%, hitting to $ 2.603 a pound.
