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Market News The international gold price is expected to fall below $1860
The international gold price is expected to fall below $1860
On Thursday (April 28), the international gold price fell to a new low of $1,871.99 per ounce since February 17, as the rise in the dollar hurt demand for dollar-denominated gold, while the Federal Reserve's imminent acceleration of interest rate hikes also weakened gold's use as an inflation hedge. Attractiveness of tools. Gold prices are expected to fall below $1,860.
2022-04-28
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On Thursday (April 28), the international gold price fell to a new low of $1,871.99 per ounce since February 17, as the rise in the dollar hurt demand for dollar-denominated gold, while the Federal Reserve's imminent acceleration of interest rate hikes also weakened gold's use as an inflation hedge. Attractiveness of tools. Gold prices are expected to fall below $1,860.
At GMT+8 14:48, spot gold fell 0.35% to US$1,879.27 per ounce; the main COMEX gold futures contract fell 0.50% to US$1,879.3 per ounce; the US dollar index rose 0.38% to 103.36.
The dollar index hit a fresh high of 103.70 since early January 2017, and a further break above 103.82 would take it to its highest level since late 2002. A stronger dollar makes dollar-denominated gold less attractive to holders of other currencies.
Yields on the 10-year U.S. Treasury note also strengthened as the market gained further clarity that the Federal Reserve plans to adopt more aggressive tightening policy next week. Gold is highly sensitive to rising yields, which increases the opportunity cost of holding non-yielding bullion.
Gold has held above $1,900, but it has been weighed down by a strong dollar recently, and the Fed is expected to raise interest rates by 50 basis points next week, said Brian Lan, managing director of trader GoldSilver Central.
From the daily chart, the price of gold may start a downward (c) wave trend from $1,998, and is expected to fall below the 61.8% target at $1,887, and test the 76.4% target at $1,860. Wave (c) is a subwave of the downward ((ii)) wave that started at $2070. Wave ((ii)) is a sub-wave of the up 5 wave that started at $1779.
At GMT+8 14:48, spot gold fell 0.35% to US$1,879.27 per ounce; the main COMEX gold futures contract fell 0.50% to US$1,879.3 per ounce; the US dollar index rose 0.38% to 103.36.
The dollar index hit a fresh high of 103.70 since early January 2017, and a further break above 103.82 would take it to its highest level since late 2002. A stronger dollar makes dollar-denominated gold less attractive to holders of other currencies.
Yields on the 10-year U.S. Treasury note also strengthened as the market gained further clarity that the Federal Reserve plans to adopt more aggressive tightening policy next week. Gold is highly sensitive to rising yields, which increases the opportunity cost of holding non-yielding bullion.
Gold has held above $1,900, but it has been weighed down by a strong dollar recently, and the Fed is expected to raise interest rates by 50 basis points next week, said Brian Lan, managing director of trader GoldSilver Central.
From the daily chart, the price of gold may start a downward (c) wave trend from $1,998, and is expected to fall below the 61.8% target at $1,887, and test the 76.4% target at $1,860. Wave (c) is a subwave of the downward ((ii)) wave that started at $2070. Wave ((ii)) is a sub-wave of the up 5 wave that started at $1779.
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