June 30, 2021 - 05:37 PM 395 views
Muddiness over the Fed’s policy outlook stays almost two weeks after a sudden unpeaceful turn in its latest policy decision frightened investors. This has in turn contributed to the listless trading scene in the gold market, Some Fed officials stuck to this hawkish tone, with Fed Bank of Richmond President Thomas Barkin saying that the central bank has made “essential further progress” towards its inflation goal in order to begin asset dwindling. The dollar, which usually moves reciprocally to gold, inched up to wing below a two-month high on Monday.
However, “the dollar will start to step down again, because the landscape is crystal clear on the rate boost advanced for at least another 18 months to two years,” said Meir.Other investors also anticipated gold to continue its downward vogue.
“Although having bounced from a sell-off two weeks ago, gold has proceeded to trade below its 100-day moving average level,” OCBC said in a note.
“We expect gold to restart its downward vogue this week as risk sentiment firms and markets stay on to look towards the potentials of stiffening monetary conditions from the Fed,” the note added.
Nevertheless, temperament remains in some portions of the market. “Gold is starting to find help here at the $1,775 level. We are starting to see investors tossing back into metals on these lower prices now, as the Fed’s more hawkish shift seems to be worth in,” as told by Bloomberg. In other treasured metals, silver eased 0.4%, palladium inched down 0.2% and platinum edged down 0.1%.