Gold still maintains its downtrend after many days

The global gold price stands at $1,894 per ounce, increasing slightly by $2 per ounce compared to the same time yesterday.

Following the release of the Fed meeting minutes, the 10-year Treasury bond yield in the United States reached its highest level in 10 months. This caused the value of the US dollar to rise to its highest point since mid-June, reducing investor interest in gold.

Financial investors are gradually shifting their capital from safe-haven assets like gold towards investments in production and business sectors or other profitable assets. As a result, gold has lost its prominence in the market.

It is predicted that the price of gold could decline to $1,880 per ounce after breaking through two significant support levels.

Commentaire:

Overall economic conditions seem better compared to three months ago. Inflation appears to be decreasing as desired by the Federal Reserve (Fed). In this context, demand for safe-haven assets like gold is expected to decrease.

Commentaire:

The prospect of higher US interest rates does not bode well for gold, as it increases the opportunity cost of holding non-yielding assets. This sentiment has weighed heavily on gold since 2022 and is expected to continue until the Fed decides to start cutting rates.

Commentaire:

Fed policymakers have agreed that uncertainty remains high and that future interest rate decisions will depend on "total" data coming in the "coming months".

Commentaire:

Most members of the Fed's Federal Open Committee of Mayors (FOMC) worry the war on usage is far from over, the minutes of the newly released meeting show. They emphasized that the FOMC can continue to tighten monetary policy.