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FX.co ★ How long will the decline in gold prices continue?

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Forex Analysis:::2023-08-15T11:20:23

How long will the decline in gold prices continue?

How long will the decline in gold prices continue?

In continuation of the bearish trend from last week, gold traded downward on Monday, losing 0.30-0.40% in price.

How long will the decline in gold prices continue?

It will likely extend its decline today as dollar and Treasury yields rose, with the former gaining 0.35%, raising the index to 103.05.

How long will the decline in gold prices continue?

Judging by the latest economic data, the current economic strength and ongoing inflation will lead to a "no-landing" scenario, which refers to a situation where very strong economic growth hampers inflation from falling to the 2% target level. This means that the Federal Reserve may keep interest rates high for a longer time, especially since US CPI moderately increased in July, while producer prices rose slightly more than expected.

However, according to statistics from the CME FedWatch tool, rates will not increase at the upcoming meeting, as the Federal Reserve will keep its current interest rate at 5% to 5%.

Market players should also await the upcoming minutes of last month's FOMC meeting.

Pressure on both gold and silver will likely persist, as the strength of the dollar continues to dominate fluctuations in precious metal prices.

Prices for the yellow metal could drop to $1,888 per ounce.

How long will the decline in gold prices continue?

Analyst InstaForex
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