The price of Gold fell to the level of $1,808 per ounce. On Monday, the quotes fell below the key support of $1,800, as market sentiment, not prone to risk, contributed to the growth of demand for the dollar. The US currency index reached its highest level since the beginning of April.
Due to the lack of important releases, the market mood is deteriorating amid increased concern about the rapid spread of a new strain of coronavirus. On Friday, US data showed that the University of Michigan consumer sentiment index fell to 80.8 points in July. Moreover, the component of inflation expectations for the coming year has risen to the highest level in almost 13 years. Despite the optimistic dynamics of the dollar, the fall in the yield of US treasury bonds is still helping gold to limit its losses. The benchmark yield on 10-year US Treasury bonds is currently at its lowest level in five months at 1.18%.
Analysts of the precious metals market still identify a number of factors that inspire confidence in the strengthening of gold prices in the rest of the year and beyond. The level of global debt will remain at a record high level, will continue to grow and keep real interest rates at a low value for an indefinite time. The US dollar looks seriously overvalued, and the global economic recovery is accompanied by an unprecedented high inflation. The policy of central banks will remain soft, regulators are mainly focused on returning to the pre-crisis level of employment. Consumer demand in China and India, which account for at least 50% of global consumer demand, is improving. Of course, there are a number of negative factors, including a strong increase in the US currency exchange rate and the strengthening of real interest rates, but in general, the forecasts remain positive for the precious metal.
The forecast expects a decline in the price of Gold to the levels of 1800, 1795 and 1790 dollars per barrel.