On Friday, the price of Gold retreated from the maximum weekly level to the level of $1,744 per ounce.
At the end of last week, the quotes were able to recoup a small part of the losses. According to analysts at TD Securities, the Gold recovery appears to have no major catalysts, while the US Dollar continues to dominate. At the moment, any strengthening of the precious metal will be limited to the range. Dollar is now the main asset in the market, as the US economy feels most confident. In Europe, lockdowns continue, and in Asia, uncertainty increases again. In addition, huge amounts of money are being spent on infrastructure in the US, and this also supports the market. TD Securities is a little more optimistic about the second quarter, but believes that gold will not gain momentum until the second half of the year.
Demand for physical Gold surged during the spring season in India, China, and other Asian countries. Data showed that India, one of the world's largest Gold consumers, imported 160 tons of the precious metal in March, 5.7 times more than in the same month a year ago, when the country was under strict isolation. Gold purchases in the country almost stopped in April-May 2020, but since the end of the year they have started to grow again. Jewelry shipments to China also increased 2.6 times in March. At the beginning of last year, demand from the world's largest consumer of Gold fell to multi-year lows, again due to the coronavirus crisis.
In my forecast, I assume that the price of gold will recover to $1,760 per troy ounce.