Forex. Gold trading forecast and signal for today, April 20
At the beginning of the new week, the price of Gold fell back to the level of $1,771 per troy ounce.
Despite the decline, the quotes still remain in the area of two-month highs. Gold is rising on the back of the strengthening of the consumer price index in the United States. The effect of core inflation will cause the main indicator to increase in annual terms over the next two months. As a result, the US consumer price index may approach 4% in May. However, it is unlikely that this is a long-term impact, and inflation is expected to fall in the second half of the year. If the outlook is in line with expectations, US treasury yields and the dollar may decline at the end of the year, which will allow you to profit from the strengthening of the Gold price.
Monetary and fiscal policy continue to provide basic support for Gold. Thus, any further weakening in the price of the precious metal in the short term should be moderate. The support for Gold is influenced not only by budget expenditures, but the demand for a safe asset also depends on global expectations of changes in interest rates. HSBC economists still expect a moderate decline in the Dollar in 2021, and this may also cause a strengthening of Gold, as well as any surge in trade tensions or geopolitical risks. The possible instability of the financial market may also cause an increase in demand for safe-haven assets.
Gold Trading Signal
In the forecast, the price of Gold is expected to rise to $1,790 per ounce.