Gold price battle ended after 5 consecutive falls
While the market needs more clues on when did US rise the interest rates, the fall of USD has led to the recovery of gold price.
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| Gold prices rebounded. Photo: AFP |
In the US session yesterday, each ounce of gold increased 0.4% to $1,323.5 while earlier, gold prices had dropped to $1,315.27 – and stay at its lowest level for more than a week. Similarly, gold futures also rose slightly by 0.18% to $1,326.1.
The expectations of rising US interest rates has eased, bring pressure to makes USD depreciated against the other valuable currencies. It contributes to support the raise of gold prices after several days of decline.
"It still depends on whether or not Fed decide to raise interest rates which mostly affect the gold price. Therefore, in the short term, the market will wait for the information of the US economic data" Bernard Dahdah - experts of Natixis said.
Currently, only about 15% opinion believe that Fed may raise interest rates in September, while many other support the idea that interest rate will rise in December - following the presidential elections. Goldman Sachs also suggest the interest rates would rise at the end of the year by 40%.
A recent study by UBS Wealth Management said the gold price in the next 3 months will be stable at 1275-1350 USD per ounce. However, during the upcoming 6 to 12 months, this study suggest that gold prices can be up to $1,350.
