Forex. Gold exchange rate forecast for today
Technically, nothing has changed in the banking metal market – the same trading range is visible. At the last American session, there was an attempt at increased growth, after which the gold chart abruptly returned to the same levels. If purchases continue with renewed vigor, then the next targets will be the resistance levels of 1776 and 1781 dollars per ounce.
It is important to note that the US stock market ended trading on Friday with a drop in shares in the telecommunications, consumer services and utilities sectors. This, in turn, supports the speculative interest in buying gold as a safe haven asset. As recently as Friday, stocks were under the influence of sales amid rising long-term interest rates. Meanwhile, the yield on benchmark ten-year US Treasury bonds returned to a three-month high at 1.60%. Therefore, in our forecast, we are based on the signals of confidence of the US economy. We are laying down the prospect of gold growth at the levels of May this year in the medium term. In addition, we must take into account that gold is significantly oversold within the annual outlook - technically, this is a buy signal.
Traditionally, gold can show attachment to the seasonality of trading. The second half of autumn and the beginning of winter shows a wave of growth against the background of buying up cheap assets of investment funds.
From the signals of the global market, it should be highlighted that the European Central Bank previously promised to continue buying bonds as part of the emergency assistance program in the context of a pandemic. The conservative policy of the European Bank may have a strong impact on gold trading.