empty
 
 

Forex Analysis & Reviews: Will gold stay afloat during current bout of inflation?
time 26.11.2021 09:26 AM
time Relevance up to, 01.12.2021 09:25 AM

This image is no longer relevant

This week, gold had its worst performance since June 18, despite rising prices early on Friday.

After a break in trading caused by Thanksgiving Day, investors seek gold as a safe haven amid rising COVID-19 risks.

On Friday, US gold futures edged up by 0.5% to $1,793,90 - the biggest gain for the asset this week.

This image is no longer relevant

Gold lost 2.8% in value since Monday on the news of Jerome Powell's reappointment as chairman of the Federal Reserve, suffering the biggest loss in 5 months.

Market players have interpreted Powell's reappointment as a signal of possible acceleration of QE tapering. The Fed could hike interest rates earlier than anticipated to tackle soaring inflation.

The latest Fed meeting minutes, published on Wednesday, indicate hawkish sentiments are on the rise among Fed officials. Many members of the board are in favor of tightening monetary policy if inflation continues to rise.

The Federal Reserve is likely to double the pace of tapering monthly bond purchases in January to $30 billion, and wind down the program fully by mid-March, Goldman Sachs analysts said in a note published on Thursday.

Monetary tightening pushes up yields of US treasury bonds, which reduces gold's appeal for investors.

Nevertheless, investors are currently more concerned about the rapid spread of COVID-19.

Amid the ongoing fourth wave of the pandemic in Europe, the World Health Organization and the UK's National Health Service are calling for emergency meetings on COVID-19 situation.

The coronavirus threatens the recovery of the global economy, boosting the appeal of safe-haven assets such as gold.

Gold is also popular as a hedge against inflation. Some analysts believe steady inflation would push up demand for the asset, boosting its price in 2022.

"Our forecast of above-target inflation and still-low U.S. interest rates into next year implies well-supported bullion values in 2022," Scotiabank commodity analysts said.

The Canadian bank forecasts the average gold price would rise by 3% to about $1,850 in 2022. Furthermore, the analysts favor gold over silver.

"Also perceived as a safe haven and an inflation hedge, the metal's value is influenced by many of the same factors as that of bullion. However, given silver's range of industrial applications and our expectations of some China-driven near-term slowdown in construction and manufacturing activity, we are less optimistic about its near-term prospects than we are for bullion," Scotiabank analysts said.

lena Ivannitskaya,
ผู้เชี่ยวชาญด้านการวิเคราะห์ของ InstaForex
© 2007-2022
ข้อดีจากการอ่านคำแนะนำของนักวิเคราะห์ได้แบบทันที
ฝากเงินเพิ่มเข้าไปในบัญชีการซื้อขาย
เปิดบัญชีการซื้อขาย

บทวิเคราะห์ของทาง InstaForex จะทำให้คุณทราบถึงแนวโน้มของตลาด! ในการที่เป็นลูกค้าของทาง InstaForex นั้นคุณจะได้รับการบริการเพื่อการซื้อขายอย่างเต็มประสิทธิภาพอย่างมากมาย

  • เทรดให้ดีแล้วคว้ารางวัล
    เติมเงินในบัญชีของคุณอย่างน้อย $500 สมัครเข้าร่วมการแข่งขัน และลุ้นรับรางวัลอุปกรณ์ติดต่อสื่อสารแบบพกพา
    เข้าร่วมการแข่งขัน
  • เฟอร์รารีจาก InstaForex
    เติมเงินในบัญชีของคุณอย่างน้อย $1,000
    เข้าร่วมการแข่งขันและรับรางวัลเป็นรถเฟอร์รารี่
    F8 Tributo
    เข้าร่วมการแข่งขัน
  • Chancy Deposit
    ฝากเงินเข้าบัญชีของคุณด้วย $3,000 และรับรางวัล $1,000
    เข้าร่วมการแข่งขัน
  • โบนัส 100%
    โอกาสพิเศษของคุณในการรับโบนัส 100% จากเงินฝากของคุณ
    รับโบนัส
  • โบนัส 55%
    สมัครรับโบนัส 55% สำหรับการฝากทุกครั้ง
    รับโบนัส
  • โบนัส 30%
    รับโบนัส 30% ทุกครั้งที่คุณเติมเงินในบัญชีของคุณ
    รับโบนัส

Recommended Stories

EUR/GBP Technical Analysis and Trading Tips for November 28, 2022

The EUR/GBP pair rose sharply today at the beginning of the European session, reaching an intraday high of 0.8675 amid a sharp strengthening of the euro. The price rebounded from

Jurij Tolin 14:51 2022-11-28 UTC+2

EUR/USD: bullish continuation above 1.0481

The EUR/USD pair climbed as much as 1.0496 where it found resistance. Now, it has retreated a little and is trying to test and retest the near-term support levels. It's

Ralph Shedler 14:50 2022-11-28 UTC+2

EUR/GBP: Euro sharply rises. How long?

The ongoing uncertainty and nervousness of investors continues to shake the markets. So, after the markets opened today with an impressive upward gap of the dollar and the decline

Jurij Tolin 14:15 2022-11-28 UTC+2

Warren Buffett donates $750 million and Walmart overcomes Amazon

While investors were analyzing the disappointing data on last week's Black Friday sell-off, Warren Buffett decided to donate more than $750 million in Berkshire Hathaway stock to four foundations related

Jakub Novak 14:09 2022-11-28 UTC+2

Video market update for November 28, 2022

Watch for buying opportunities

Petar Jacimovic 13:57 2022-11-28 UTC+2

Credit Suisse stock continues to sink

While US stock indices are trying to find their daily lows, the stock price of the troubled Swiss lender Credit Suisse Group AG continues sinking. The company's shares dropped

Jakub Novak 13:57 2022-11-28 UTC+2

Technical analysis of USD/CHF

#USD/CHF: The chart shows the movement of USD/CHF on the 4-hour (H4) chart. Quotes reached the key support level of 0.9397, which is very important for future dynamics. As long

13:52 2022-11-28 UTC+2

Trading tips for USD/JPY

Following a long price decline in USD/JPY, quotes hit the monthly low, but did not consolidate lower. This is why sellers remain on top, specifically at the level of 142.500

Andrey Shevchenko 13:52 2022-11-28 UTC+2

Gold keeps afloat

With the Federal Reserve hoping to slow the pace of rate hikes next month and into 2023, retail investors have become increasingly interested in gold. However, Wall Street analysts

Irina Yanina 12:51 2022-11-28 UTC+2

US premarket on November 28: US stock market falls sharply amid protests in China

On Monday, US stock indices fell amid growing unrest in China caused by restrictions had a negative impact on global markets. The US dollar depreciated after stabilizing during the Asian

Jakub Novak 11:48 2022-11-28 UTC+2
หากไม่สะดวกคุยในตอนนี้
ระบุคำถามไว้ได้ใน แชท.