The prices of gold remain stable this Monday, July 17, supported by the weakness of the dollaras investors await further clues on tightening of the Federal Reserve’s monetary policy from the United States andNo means of cooling signalsor inflation.
Spot gold is stable at $1,953.09 an ounce. Meanwhile, the futures of the gold in the United States they fall 0.4%, $1,956.60. For its part, the dollar is around minimums of more than a year against its rivalsmaking bullion cheaper for holders of other currencies.
gold speculators are curbing their enthusiasm for an “imminent end to Fed rate hikeswith markets wary that US consumers still harbor enough purchasing power to reignite the US inflation pulse,” said Han Tan, chief market analyst at Exinity.
the golden metal posted its biggest weekly rise since April last week on bets that the Fed could pause increases in the cost of credit after July. Lower rates favor gold as they lower the opportunity cost to have ingots, which do not bear interest.
On the other hand, a report showed that China’s economy grew at a brittle pace in the second quarteras demand weakened at home and abroad, increasing pressure on the authorities to offer more stimulus to prop up activity.
In other precious metals, cash money it falls 0.5%, to u$s24.79 an ounce; the platinum it lost 0.4%, to u$s967.34; and palladium fell 0.2% to $1,269.07.
In general, heGold prices have remained stable in recent weeks, as investors assess the risks of a global recession and the outlook for interest rates. The Fed is committed to raising rates until inflation subsides, but investors fear raising rates will lead to an economic slowdown.
Neverthelessgold prices could rise if the Fed is forced to pause rate hikes due to an economic slowdown. However, gold prices could also fall if the Fed continues to raise rates and inflation remains high.
Gold: the question is whether it is time to invest
When we talk about strong assets in the marketwe tend to focus on the big companies on Wall Street, like Apple, Microsoft or Alphabet. However, many of us are not aware that the asset that mobilizes the largest amount of investment in the market is, by far, gold.
Gold, considered the refuge par excellence in the financial markets, is emerging as an attractive option at the moment, especially after the favorable inflation data in the United States. There is no denying that gold can be a valuable element in an investment portfolio, as protection in the event of a turnaround in the markets or, as analysts point out, in a global recession scenario, even if it is brief.
Gold’s capitalization currently exceeds US$12.95 billion, heading towards 13 trillion, which means which is four times greater than the capitalization of Apple.
According to independent analyst Roberto Moro, “gold presents a certain complexity. We must take into account that, after reaching all-time highs around 2,090 at the beginning of May, in the correction we have experienced, it has fallen back to 0.382% Fibonacci of all the last big rise from 1,620.”
The expert highlights that “although it is true that the previous trend is bullish, we must also consider that we have not yet reached all-time highs. In the short term, if gold manages to overcome the horizontal resistance zone of 1,975, which represents 0.382% of the fall from all-time highs, it could become a good call option”.
In addition, Roberto Moro points out that “I do not think that gold is going to experience a very significant upward movement in any case, due to its proximity to all-time highs, and above all because I am not convinced that the euro can enthusiastically confirm a level above 1.1280”.
Source: Ambito
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