Gold again fell below the key support of $1,800 per ounce.
On Wednesday, the quotes reached the level of 1793 dollars. Yesterday's growth turned out to be the most short-term, and analysts now predict a further decline to the level of $1,755 per ounce. The increase in inflation causes an ambiguous reaction in the precious metals market. Retail investors are buying up gold coins to protect against inflation, but this is not enough to compensate for sales in other areas of the market. Money managers have reduced their interest in gold in recent months. At the same time, there is still a demand for jewelry in key markets, such as India and China. Central banks also remain net buyers of the precious metal. The World Gold Council reported that the total volume of purchases in the first seven months of the year reached 347 tons. For the entire year 2020, central banks bought only 263 tons of gold. Analysts expected the ECB meeting last Thursday, but in the end the meeting had little effect on the quotes. The European Central Bank left interest rates unchanged and announced that it was maintaining the volume of bond purchases.
The forecast assumes a further decline in the price of gold to the levels of 1790, 1785 and 1780 dollars per ounce.