Forex. Gold trading forecast for today, May 25, 2021
Gold has remained in a narrow upward range since last week. On Monday, the price of the precious metal rose slightly to the level of $1,883 per ounce. The local Gold rally continues.
The immediate reason for the increase in quotations last week was a serious drop in the cryptocurrency market. Capital is actively flowing from digital assets to gold, a classic defensive asset and an inflation hedge tool. Meanwhile, inflation expectations are rising. The depressing statistics of the US labor market forces the Fed to stick to its course of ultra-soft policy. Against this background, the US currency index is declining, and this also has a positive effect on the precious metals market.
Note that the gold exchange rate did not suffer, even despite the bad news from India. The Akshaya Tritia festival, which is considered favorable for buying jewelry, was held in the country, but 80% of jewelry stores were closed due to the pandemic. Consequently, investors support quotes when consumer demand declines. In this case, the recovery in demand for physical gold will lead to an even stronger price increase. Major investment banks are predicting a breakout of the $1,900 per ounce level as early as this week and a move towards the key resistance of $2,000 within a few months.
Signals for trading Gold currency pair
The forecast expects an increase in the price of Gold to the levels of 1885, 1890 and 1900 Dollars per ounce.