Gold presents a volatile outlook as many central banks follow the Fed’s decision to raise interest rates to rein in inflation.
Starting the last trading day of the week at $1,671 an ounce of gold is hovering around this level.
Spot gold tumbled as much as 1.1 percent on Thursday after the dollar slumped and bond yields rose as it intervened in the foreign exchange market to support Japan’s currency.
While the precious metal continues to trade at its lowest level in two years, it is considered that the dollar may enter a bear market as it remains at record levels.
“Spot underThe weakness is likely to continue as monetary tightening makes it more costly to hold gold,” said Gnanasekar Thiagarajan, Director of Risk Management Services at Commtrendz. “However, recession concerns and escalation in the Russia-Ukraine war may support prices.”
The central banks of Switzerland, Norway and England, which followed the Fed in their efforts to control price increases, also announced their decision to increase interest rates. The non-interest bearing precious metal priced in dollars generally interacts negatively with the dollar and interest rates.
Ed Moya, Oanda Senior Market Analyst, said: “Gold is clearly on track to become a safe haven, with the global outlook worsening and Wall Street’s confidence that we are close to seeing a peak in bond yields. The precious metal has huge support at the level of $ 1660 and if prices can hold here, it may rise to $ 1,700 over time. ” used expressions.