Gold has already fallen to the support level of $1,6850
Gold exchange rate forecast for today.
Gold has already fallen to the support level of $ 1,6850 per ounce on the back of rising demand for the US dollar.
On Wednesday, President Joe Biden will unveil a new plan to help the economy, and a proposal to create jobs, worth a total of $3-4 trillion. This increased the optimism of reflation and led the market to believe that more government bonds will be issued in the future to finance budget spending. As a result, the yield on 10-year Treasury bonds rose to 1.74% — the highest in 14 months. The real yield in the US rose to -0.62%.
Capital outflows from Gold. In the world's largest gold ETF, the Gold Trust, the number of shares outstanding has fallen by almost 15% over the past few months. Gold prices have fallen by 11.8% over the same period, indicating that capital is moving away from the precious metal to riskier assets in search of profitability and growth.
Friday's report on employment in the US non-agricultural sector may lead to increased volatility in both the currency markets and the precious metals markets. The labor market is expected to add 655,000 new jobs in March as the economy continues to recover from the crisis. A stronger-than-expected reading is likely to bolster growth prospects and point to a rapid pace of Fed rate hikes, which could lead to a stronger US dollar. In this scenario, gold prices are likely to decline further. The opposite can happen if the data disappoints.
In the forecast, I expect a further decline in the price of Gold to the level of 1665 dollars per ounce.