WEEK AHEAD: Gold price surges $50, should investors be selling into the rally? | kitconews gold silver finance preciousmetals markets mining investing |
Gold prices surged nearly $50 on Friday as the latest U.S. jobs report clarified some of the Federal Reserve's mixed messages, and China signaled a possible easing of its Covid-Zero policy. But caution is still advised as all previous quick rallies have been used as selling opportunities.
On the dovish end of things, Powell said that the U.S. central bank is now paying close attention to"the cumulative tightening" and potential"lags" with which monetary policy affects inflation and economic activity. "This report shows that the labor market is cooling, and that is good news. Gold is surging as the dollar is having its worst day since March 2020," OANDA senior market analyst Edward Moya told Kitco News."The market now believes that the Fed has got a good handle on things and could go at a slower pace."
"The market is thinking that the economy is slowing down, and that is reflected in the yield curve here, with the 2-year and the 10-year," TD Securities global head of commodity markets strategy Bart Melek told Kitco News. TD Securities is projecting for gold to fall below $1,600 in the next few months as it sees the federal funds rate peaking at 5.5% instead of the previous projections of below 5%."As the economy slows, you will start seeing real rates jump. And central banks won't be buying as much gold as they did this last quarter. The cost of carrying will be expensive," Melek added.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bullish sentiment growing in gold with prices ending the week up 2%Bulls or Bears? Wall Street vs. Main Street puts together leading analysts and regular metals investors to find out where they think gold is headed next week. Picked up and quoted by other leading news organizations, this feature has become a cornerstone for the industry and an indicative benchmark.
Read more »
Should gold investors be selling into the rally? Analysts weigh in on the $50 move
Read more »
Gold price to trade at $1,700 next year as Fed, dollar outlooks shift, says Capital Economics
Read more »
Pearson announces new program to curb security stalls ahead of travel surgeCanada\u0027s busiest airport says it will offer passengers a way to bypass long security lineups as it looks ahead to a winter travel surge.
Read more »
Pearson airport announces new program to curb security stalls ahead of travel surgeCanada's busiest airport says it will offer passengers a way to bypass long security lineups as it looks ahead to a winter travel surge and tries to avoid a repeat of the travel chaos seen earlier this year.
Read more »