Gold forecast for today - 1690
The price of gold quickly recovered after falling the day before. On Wednesday, the quotes reached the level of 1707 dollars per troy ounce.
The precious metals market rose more than 1%, and recovered after sharp losses for two consecutive days. A slight decline in US yields, a correction in the Dollar, an increase in financial activity at the end of the month and profit-taking contributed to the recovery. The current rebound is still considered as a correction, as the main trend in gold remains downward. The price of the asset is still strongly correlated with the real yield in the US.
Analysts at Capital Economics believe that the real yield curve for treasury securities will continue to rise. This will put even more pressure on the price of Gold. The precious metal is unlikely to get a boost from demand for safe-haven assets as the stock market remains strong.
The price of Gold has fallen more than 11% in the first three months and is on track for its worst quarterly performance since late December 2016. Gold also recorded its third consecutive monthly drop. At the moment, the precious metal market is ignoring a lot of good news, such as the huge spending on stimulating the economy. Some investors still see Gold as a hedge against higher inflation that could follow aggressive stimulus. But for now, the precious metal is trying to maintain its position against the background of high demand for USD.
In the forecast, I expect a decline in the price of Gold to the level 1690 Dollars per troy ounce.