According to a number of analysts, the current year will not be the most successful for the yellow metal. It will be rich in ups and downs in relation to Gold, but experts do not expect a sharp increase in its price.
A day earlier, on Thursday evening, February 11, the price of the precious metal fell slightly after active growth during four trading sessions. As a result, the price of the April Gold futures on the Comex exchange fell by 0.17% to $ 1839 per 1 troy ounce. Since gold has steadily risen in price over the past four days, adding 2.9% on its growth today, slightly corrected. Today, the "sunny" metal is trading near $ 1,822, trying to maintain its own positions. This morning, experts recorded a slight decline in gold (by 0.24%). Its downtrend is due to a slight strengthening of the greenback.
This week, the precious metal was supported by the weakening of the USD caused by expectations regarding the adoption of stimulus measures in the United States necessary to support the national economy. Experts do not rule out that at the end of the week, gold will rise in price after a two-week subsidence. However, even a slight strengthening of the USD on the last day of the trading week is negative for Gold quotes.
Most experts agree that the coming year is very difficult and ambiguous for the entire precious metals market. According to a number of analysts, over the past year, gold has already shown strong growth, and we should not expect a repeat. In 2020, the yellow metal fulfilled its function, protecting investors as much as possible and preserving their capital. An important role in shaping the dynamics of gold was played by the so-called "plan to save America", implemented by Joe Biden with the help of cash injections. It implies a strong inflow of dollar liquidity to the financial markets and a rise in the price of precious metals, primarily Gold. However, the price of gold depends on the dynamics of the dollar. In case of further weakening of the greenback, the growth of the "solar" metal will increase, and vice versa. According to preliminary estimates, this year the price of the precious metal will remain in the range of $2000 per 1 troy ounce.
However, many currency strategists do not agree that gold has almost exhausted its growth potential. Some of them expect the precious metal to rise not in 2021, but in the next two or three years. According to Stephen Innes, an analyst at Axi, the "solar" metal will help the monetary policy of the head of the Federal Reserve Jerome Powell this year. In his opinion, the analyst relies on the words of the head of the Federal Reserve, who claims that the US economy will not remain without support, and the rise in interest rates is not needed now.
The material has been provided by InstaForex Company - www.instaforex.com