Gold, which has attracted the attention of investors with its steady rise, pushed $ 2,014 on Tuesday. Having reached the highest level in the last week, gold could not maintain its price at $ 2,000 and fell to $ 1,993. The fate of the ounce of gold, which is currently traded at $ 1,985, will become clear after the minutes to be published by the Bank of America (FED). Fed announcement is expected to be shared with the notes on the meeting at the end of July.
The US dollar lost 5 percent against the euro in a few weeks, hitting the bottom of the last two years. There was an increase of 0.1 percent as the US dollar began to weaken against its rivals. The dollar began to depreciate after the FED lowered interest rates to close the economic wounds caused by the COVID-19 epidemic, and the US government announced an unlimited amount of money. Investors who avoided investing in depreciating dollars turned to gold and cryptocurrencies. Gold, which investors regarded as a safe haven, has been testing the $ 2,000 band for a while. Gold, which exceeded $ 2,000 on Tuesday, declined in the following hours and fell to $ 1,993. In addition, gold futures fell 0.5 percent to $ 2,002.
They Await the FED’s Meeting Minutes
Some economists say that the strengthening of the dollar will lower gold prices, while others think that gold will reach more investors than the lower price. Pointing to the unreliable and wild market of the US dollar, OANDA’s market analyst Jeffrey Halley said, “If gold falls to $ 1,990, it may attract more investors.” Analyst Wang To interpreted the lowest price he could see after falling from the 2,000 band of gold as $ 1,978.
Economist Margaret Yang, who thinks that gold is returning to a downward trend, attributed the 0.4 percent decrease experienced to the dollar that started to recover in the short term, “While the dollar got stronger, gold fell. “If the dollar continues to strengthen, the rise in gold prices may slow down.”
Analysts and commentators are waiting for the meeting minutes of the Federal Reserve (FED) in order to be sure of the effect of the dollar on gold and to see the future of the market clearly.