Forex. Gold exchange rate forecast for today, May 28, 2021
The price of Gold fell slightly to the level of $1,896 per ounce. The quotes could not immediately gain a foothold above the resistance of $1,900, but the forecasts for further growth remain positive.
Currently, there is a clear uptrend in the Gold market. The money supply in the economy continues to grow, and the speed of money circulation will continue to accelerate. Inflation is gaining momentum, and is already 2 or even 3 times higher than the US Federal Reserve's target. And this factor is very positive for the Gold market. Rising government debt and central bank balance sheets will increase inflationary pressures. And this will weaken the US Dollar, which will support the value of gold.
All current factors speak in favor of the precious metals market. No tax increase will solve the government's debt problem. The rise in commodity prices will be felt primarily by end-users. Prices for many consumer goods will rise. US inflation is unlikely to remain at 2.5%, as the Fed wants. As a result, more and more investors will come to the gold market. Analysts believe that we are only at the very beginning of a rush for the precious metal. Investors traditionally view gold as an asset with which they can protect their savings from complete depreciation.
Signals for trading Gold
In our forecast, we assume a further correction in the price of Gold and a decline in quotations to the levels of 1893, 1890 and 1880 Dollars per ounce.