On Wednesday, Gold fell in price to the support level of $1,810 per ounce. At the end of its scheduled meeting, the FOMC left the rate and the size of the quantitative easing program unchanged, but the median estimate of the regulator now shows two increases in 2023.
Analysts of the Singapore bank OCBC believe that the price of gold at around $1,900 per ounce will be the maximum value this year, and in the future the price may then decline to the level of $1,800. By the end of 2022, the precious metal may fall even to the level of 1500. The downward shift in both nominal government bond yields as a result of the weak US labor market and break-even yields due to falling inflation expectations means that real yields should now remain within this range. This indicator for key US government bonds will reach -1% in the near future and may slowly grow to -0.6% by the end of 2021. This suggests that gold, which is usually in the opposite correlation to real bond yields, could hit a year-high of $1,900. By the end of 2021, gold will be around the $ 1,800 support as global vaccination measures gain momentum. At the same time, the US Federal Reserve is becoming less conservative in its monetary policy, which leads to an increase in real interest rates and, in turn, pushes gold prices down.
Forex trading. Gold exchange rate forecast for today, June 17, 2021
The forecast assumes a further drop in the price of Gold to the levels of 1805, 1800 and 1790 Dollars per ounce.