Gold price hovers at a high level ready to approach 1,900 USD
  • Vote Up0Vote Down venynxvenynx
    Posts: 5,288Member
    Global spot gold price rose to 1,817.88 USD on July 8, hitting a 8-year
    high. Wholly speaking, gold price still hovers at a high level.
    According to the previous experience, it seems like the gold price hasnt
    peaked, and it is likely to hit a new high in the future and edges
    close to another major level of 1,900 USD.To get more news about WikiFX, you can visit wikifx official website.


    I have traded gold for 30 years and know that there are many basic
    factors that can affect the trend of gold, as well as major ones
    including against the USD, trend of the USD, geopolitics and
    anti-inflation. Now the weak US dollar, geopolitical tension and easing
    monetary policy by global banks all contributes to further currency
    depreciation. Although the strong US stock decreases risk aversion, gold
    price will rally steadily and repeatedly due to the well support by
    other favorable factors.

      It is remarkably that a sudden slump in global stock markets is
    profitable for gold price with an increasing risk aversion. Recalling
    the sharply drop in stock market in March, both gold and stock slumped
    by over US$250. As the stocks fall led to the liquidity squeeze of US
    dollar and further to sharp rise of US dollar index, causing the
    simultaneous sharp drop of both a group of non US dollar currencies and
    gold. Therefore, if the global markets collapse, do not easily believe
    that it is good for the gold price 100 percent.

      Recently, according to a data released by the US, its inflation
    increase recorded a 8-year high, caused by the sharp recovery of oil
    price. If the inflation in the US becomes worse, the Fed still needs to
    simulate economy by maintaining lower interest rate, which is expected
    to support well the price of gold, as an anti-inflation hedge. In a
    short term, supported by the profitable factor above, the spot gold
    price is likely to test above the level of 1,840-1,850 USD, and then to
    approach the major level of 1,900 USD after giving back gains with a
    stable fluctuation.

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