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Market News The international gold price will see $1,824 in the market outlook
The international gold price will see $1,824 in the market outlook
On Tuesday (June 7), the international gold price rebounded weakly, as investors bet that the Fed's active tightening of monetary policy would keep interest rates high for a long time, thereby boosting the yields of U.S. Treasury bonds, the yield of 10-year U.S. Treasury bonds It climbed to its highest level in nearly a month and drove the dollar higher. The price of gold will see $1,824 in the market outlook.
2022-06-07
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On Tuesday (June 7), the international gold price rebounded weakly, as investors bet that the Fed's active tightening of monetary policy would keep interest rates high for a long time, thereby boosting the yields of U.S. Treasury bonds, the yield of 10-year U.S. Treasury bonds It climbed to its highest level in nearly a month and drove the dollar higher. The price of gold will see $1,824 in the market outlook.
At GMT+8 14:55, spot gold sank 0.03% to $1840.84/oz; the main COMEX gold futures contract fell 0.04% to $1843.2/oz; the US dollar index rose 0.23% to 102.637, hitting a new intraday high since May 23 to 102.838.
Stephen Innes, managing partner at SPI Asset Management, said: "Ahead of this week's U.S. Treasury auction, higher U.S. Treasury yields spooked gold investors... The dollar is surging on the back of higher yields. We are in the middle of a global rate hike. In an environment, it’s not good for gold.”
The Fed is on track to continue the pace of May rate hikes in June and July -- 0.5 percentage point. A solid May nonfarm payrolls report released last week boosted expectations that the Federal Reserve will continue to accelerate policy tightening. Investors awaited this weekend's U.S. May inflation report for further clues on the prospect of a rate hike by the Federal Reserve.
JPMorgan analysts expect gold to average $1,800 an ounce in the third quarter, on expectations of a rebound in investor risk appetite and continued gains in U.S. yields. But higher interest rates will have negative consequences for economic growth, and gold remains cautious.
Dhwani Mehta, analyst at FXStreet pointed out: “Gold’s rebound needs to break above resistance at $1,842, with the next upside target at $1,850, after which it will challenge this week’s highs at $1,858. Bulls will look for new opportunities after breaking $1,858 for further gains. Towards last week’s high of $1,870.”
From the daily chart, the price of gold may start a downward iii wave trend from $1,874, and the lower support looks at the 23.6% target of $1,824. Wave iii is a sub-wave of the descending (c) wave that started at $1998. Wave (c) belongs to wave ((c)) that started at $2070.
At GMT+8 14:55, spot gold sank 0.03% to $1840.84/oz; the main COMEX gold futures contract fell 0.04% to $1843.2/oz; the US dollar index rose 0.23% to 102.637, hitting a new intraday high since May 23 to 102.838.
Stephen Innes, managing partner at SPI Asset Management, said: "Ahead of this week's U.S. Treasury auction, higher U.S. Treasury yields spooked gold investors... The dollar is surging on the back of higher yields. We are in the middle of a global rate hike. In an environment, it’s not good for gold.”
The Fed is on track to continue the pace of May rate hikes in June and July -- 0.5 percentage point. A solid May nonfarm payrolls report released last week boosted expectations that the Federal Reserve will continue to accelerate policy tightening. Investors awaited this weekend's U.S. May inflation report for further clues on the prospect of a rate hike by the Federal Reserve.
JPMorgan analysts expect gold to average $1,800 an ounce in the third quarter, on expectations of a rebound in investor risk appetite and continued gains in U.S. yields. But higher interest rates will have negative consequences for economic growth, and gold remains cautious.
Dhwani Mehta, analyst at FXStreet pointed out: “Gold’s rebound needs to break above resistance at $1,842, with the next upside target at $1,850, after which it will challenge this week’s highs at $1,858. Bulls will look for new opportunities after breaking $1,858 for further gains. Towards last week’s high of $1,870.”
From the daily chart, the price of gold may start a downward iii wave trend from $1,874, and the lower support looks at the 23.6% target of $1,824. Wave iii is a sub-wave of the descending (c) wave that started at $1998. Wave (c) belongs to wave ((c)) that started at $2070.
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