empty
 
 
You are about to leave
www.instaforex.eu >
a website operated by
INSTANT TRADING EU LTD
Open Account

22.08.201911:27 Forex Analysis & Reviews: Gold starts and wins: growth is in full swing

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Exchange Rates 22.08.2019 analysis

According to experts, the precious metal was in a winning position at the moment. It will not be able to be shaken by any Fed decisions, including monetary policy easing. Experts believe that a possible recession in the economy and low-interest rates will strengthen the position of the yellow metal.

Currently, gold holds the conquered peaks, although the price of the precious metal has rested in a zone of strong resistance due to high overbought. According to analysts, this is a harbinger of correction or consolidation of the value of gold in the new price range from $1,490 to $1,540 per ounce. Most experts do not expect a significant reduction in the price of precious metals. They consider the area from $1,400 to $1,460 per ounce to be the potential targets of the correction.

The current moment is favorable for the yellow metal, and the Fed's actions play a key role here. Last month, the US regulator lowered rates for the first time since the financial crisis of 2008. The head of the Fed Jerome Powell made it clear that the trade conflict between the US and China may require the further easing of monetary policy. If the Fed follows this path or resumes the quantitative easing (QE) program, we should expect a massive outflow of capital to gold, which is trading near six-year highs.

If the Fed leaves monetary policy unchanged, the probability of a recession will increase significantly, especially if Beijing and Washington fail to agree. Then the yellow metal will benefit from its status as a "safe haven" asset. In any case, gold will win, experts say. They recommend buying precious metals at any price rollback.

According to experts, the cost of gold will increase. The end of this growth wave will stop at $1900 per 1 ounce. This should be expected in about a year and a half, analysts say. At the moment, the precious metal is trading at $1508 per 1 ounce, and in the medium term, it is possible to rise to $1670 per 1 ounce.

Larisa Kolesnikova
Analytical expert of InstaForex
© 2007-2024

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.




You are now leaving www.instaforex.eu, a website operated by INSTANT TRADING EU LTD
Can't speak right now?
Ask your question in the chat.

Turn "Do Not Track" off