MG Network

something big isHappening!

In the mean time you can connect with us with via:

Copyright © Money Grows Network | Theme By Gooyaabi Templates

Money Grows Network

Archive

Powered by Blogger.

Welcome To Money Grows Network

Verified By

2006 - 2019 © www.moneygrows.net

Investments in financial products are subject to market risk. Some financial products, such as currency exchange, are highly speculative and any investment should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This website is an information site only.

Popular

Pages

Expert In

Name*


Message*

Gold may advance by almost 13% during six months

analytics608a69ac9eca0.jpg

On Wednesday, gold was under pressure from a sharp rise in the yield on the US 10-year bonds. Against this background, the precious metal dropped to $1,773.90, hitting a one-week low. Yesterday, it lost 0.3% and a day earlier, it slid by 0.1%.

Today, the situation has changed significantly. By the moment I wrote the article, the yield on the US treasury bonds decreased to 1.617%, thus pushing gold prices higher. At the beginning of the day, gold futures for June delivery were trading near the level of $1,783.95. The futures increased by 0.57% or $10.05 compared to yesterday's close.

analytics608a6a48047d2.jpg

At the same time, silver also tried to recoup some of the losses it suffered on Wednesday. Yesterday, silver futures for May delivery dropped by 1.2%, whereas June futures lost 1.3%. Today, the price of the asset jumped by 1.15% reaching the level of $26.385.

Commodity analysts suppose that the US Fed's decision is the main driver of precious metals. The US regulator decided to keep the key interest rate on its historic low of 0-0.25%. The asset-purchasing program also remained unchanged.

Under such conditions, gold may make an attempt to jump to $1,800. If the yield on the US bonds remains the same, gold prices may reach $1,850.

Carlo Alberto De Casa, Chief Analyst for the derivatives broker ActivTrades, estimates the future of the asset as positive. Only a new strong driver may lead to a rapid rise in the gold market. In fact, the US Fed meeting results could act as the driver.

At the same time, analysts at The Goldman Sachs suppose that in the next six months, gold may appreciate by almost 13% compared to the current price and approach the record high logged in the previous year. According to their estimates, in just half a year, gold will cost $2,000 per troy ounce.

Popularity of the safe-haven asset will also increase amid the weakening bitcoin. New outbreaks of the coronavirus in the world showed that cryptocurrencies are not ready to compete with gold.

The material has been provided by InstaForex Company - www.instaforex.com