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Original title: Great Buying Opportunity! Gold plummeted over $ 150 in two weeks Gold priceIt is planned to launch a counterattack
FX168 Financial News Agency (North America) reported that the price of gold lagged on previous trading days and rose slightly on Wednesday (Nov 25). A weaker US dollar helped offset the impact of investors turning to the stock market and other high-risk assets.
In the US market, spot gold once rose about 0.6%, hitting a daily high of US $ 1,817.64 per ounce, and has now fallen from its highest point. Spot gold on Tuesday hit its lowest level since July 17 at $ 1,800.01 per ounce.
(30-minute chart of spot gold, source: FX168)
Independent analyst Robin Bhar said, “It is clear that a bargain is being sought at the moment. The price of gold has fallen by more than $ 150 in the past two weeks and investors are taking this opportunity to build positions.”
The US dollar index is hovering near its recent three-month low, making dollar-denominated gold cheaper for buyers in other currencies.
Sunilkumar Katke, Head of Foreign Exchange and Commodities at Axis Securities, said a weaker US dollar is a good opportunity for investors who did not buy gold in March.
Analysts don’t expect gold prices to rebound immediately, as market optimism about the new crown vaccine and smooth transfer of power to Washington will push the stock market higher.
StoneX analyst Rhona O’Connell said gold prices could consolidate. “Vaccines cannot cure disease. Accelerating infection rates is a major concern. It is not just a humanitarian issue, but also an economic one. Negative interest rates will continue.”
Lower interest rates reduce the opportunity cost of holding non-income gold assets. Given gold’s status as a hedge against possible inflation caused by large-scale global economic stimulus measures, gold has risen more than 18% this year.
Goldman Sachs said that as more evidence of inflation emerges, gold prices are expected to rise again.
Right now, investors are turning their attention to the minutes of the Fed meeting scheduled to be announced Wednesday at 11.00 Western time (Thursday at 3.00 Beijing time).
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