New Delhi, 11 July (IANS). Gold prices in international markets are in consolidation face, but this time is preparing gold for future boom. This information was given in a report released on Friday.
MK Wealth Management said in its latest navigator report that the market is currently focusing on two factors, with the first US dollars to have an estimated decline in the US dollar against the direction of the interest rate and the second major currencies.
The report reported that amid uncertainty over the possible impact of tariffs on American retail prices, one of the major factors of gold prices fluctuations has disappeared due to Fede’s postponement of interest rates.
The report stated that given the existing economic conditions and relatively low inflation data, the Fed is more likely to apply one or two rates before the end of this calendar year.
The MK report said, “The dollar index is at 97.00 and has fallen by about 10 percent in the last six months.”
Wealth management firm said that there is a need to further decline in the dollar due to the cut in official rates and the decline in market yields.
Meanwhile, stable dollars and strong American bond yields have put pressure on the prices of precious metals over the last two weeks.
“Gold technical support is at US $ 3,297 and US $ 3,248 respectively,” the report said.
Earlier this year, the demand for gold from China was often considered as a factor promoting high gold prices. However, after the alleged selling by China in the late April and early May, the factor has become irrelevant in the broader landscape.
-IANS
ABS/
