The price of Gold fell again to the level of $1,735 per ounce, although the US Dollar fell against its main competitors on Wednesday.
The pullback of quotes from the strong level of $1,750 looks like a technical adjustment in the short term. Rising treasury yields added to the pressure on the precious metals market. Gold was also affected by rising inflation in the United States. Consumer price growth is expected to be quite high in the coming months. Fed Chairman Jerome Powell noted the indicators and confirmed the regulator's commitment to keep rates low and support the economy.
Analysts at the Canadian investment bank TD Securities do not see an important catalyst for the growth of the gold price right now. As long as the US Dollar shows its stability, the value of the asset will continue to remain in a narrow range. At the moment, the dollar is strengthening, and the US economy remains the engine of global growth. Europe is reintroducing quarantine restrictions, and how US residents can be fully vaccinated by May this year. That's why US financial markets will feel good. Moreover, the country is planning to implement a program of infrastructure renovation, and huge amounts of money will be spent on this. In general, the bank is very optimistic about the prospects for Gold in the second quarter of 2021, but the best situation for the asset will develop in the second half of the year.
Gold Trading Signal
The forecast is expected to increase the price of Gold to 1755 USD per ounce.