At the end of last week, the price of Gold again unsuccessfully tested the resistance level of $1,900 per ounce and eventually fell back to the level of 1,877.
Since mid-May, the asset has been trading in the range of 1850-1900. In May, US consumer inflation rose immediately by 5% and it seemed that this would be the perfect moment for gold on the way to the key resistance of $2000 per ounce. Nevertheless, the strongest price pressure in the US in more than a decade did not help gold, which again fell back to a weekly low.
Another important factor in favor of the growth in the value of gold will be the introduction of new banking rules, called Basel III, which come into force in Europe and the United States at the end of June. In essence, the rules make changes to which instruments are included in both the asset and the liability of the registry. Physical gold is moved to the first level asset, which is taken into account when calculating reserves at a value of 100%. This in itself is a positive development, as banks will be able to store Gold without compromising treasury bonds and other assets. Thus, the difference in the valuation of physical and paper gold increased significantly, which gave banks an incentive to buy the physical precious metal. As banks have until the end of the year to fully meet the requirements, asset purchases will continue in the coming months.
Forex trading. Gold exchange rate forecast for today, June 14, 2021
The forecast assumes an increase in the price of Gold to the levels of 1890, 1895 and 1900 Dollars per ounce.