The price of gold is trading at $1,795 per ounce without significant changes.
At the beginning of the week, quotes fell below the important $1800 mark, as the strengthening of the US dollar and the growth of government bond yields put pressure on the precious metal. The financial market expects that the Fed will be able to continue to ignore rising inflation. The price of gold fell amid rising government bond yields on expectations that the slow recovery of the US economy will allow the Fed to accept higher inflation in the short term. Given that a reduction in stimulus from the Fed in December looks likely, the curve will become even steeper, and this should turn out to be a negative factor for gold in the short term. The precious metal may fall to the level of $1,755 per ounce, and if this level is easily broken, the next downward movement may set a price target near the support of 1,700. As long as the market ignores the price pressure over the next few months, disinflationary forces around the world are likely to put an abrupt end to the upward movement of government bond yields, which will ensure that many investors continue to buy gold. At the same time, the US currency is likely to strengthen further, putting pressure on precious metals.
The forecast assumes a decline in the price of gold to the levels of 1790, 1785 and 1775 dollars per ounce.