The price of gold reached a two-week peak near the resistance level of $1,830 per ounce.
On Thursday, quotes rose by more than 1% after the US Federal Reserve Chairman Jerome Powell assured investors a day earlier that a rate hike is not expected in the near future. As a result of these words, the dollar went to multi-week lows.
The gold market seems to be reacting to the usual indicators, such as the dollar exchange rate and the yield of US Treasury rates, which are now the most favorable for the growth of the asset price. And this is despite the fact that there are still no significant changes in the Fed's policy. Powell said that the US labor market still has a lot to strive for before the time comes to withdraw support, and the Fed is still far from considering raising rates. Low interest rates in the United States put pressure on the yield of the dollar and bonds, increasing the attractiveness of the precious metal, which does not bring guaranteed returns.
The growing uncertainty of monetary policy, inflation and the increasing risk of stock market volatility should contribute to the demand for safe assets. Global demand for gold rose in the second quarter to the highest quarterly level in a year, as central banks and investors increased purchases. The quotes managed to break away from the strong support of $ 1800, and there is a good chance of further movement to the next benchmark of $1900.
The forecast expects a further increase in the price of gold to the levels of 1835, 1840 and 1850 dollars per ounce.