Gold, short term weakness
Central banks and global governments have released massive stimulus to bolster their economies from the impact of the pandemic. This has prompted gold to rise around 28% this year is seen as a hedge against inflation and currency devaluation, investors are waiting for something to come from the U.S. Treasury, and for Congress. to reach an agreement. Persistent concerns about the pandemic-led economic crisis have increased the metal’s attractiveness, although gains have been limited.
➢ We will have lower interest rates for much longer and changes with the amount of stimulus we are receiving for the economy right now inflation could start to rise which should help gold.
➢ But beware, here everything also goes up with garbage, there is a very strong distortion of the market between reality and market prices.
We cannot deny the completely evident uptrend, but we are concerned about the hypersensitivity that has been created on the physical market with the non-deliveries with the real low volumes.
➢ Lower interest rates reduce the opportunity cost of holding non-productive bullion, which is also seen as a hedge against inflation and the fear of currency devaluation.
➢ The data showed that the number of Americans filing new jobless claims hovered around 1 million last week, suggesting the job market recovery stalled as the pandemic continues to evolve.
We believe gold prices remain bullish, respecting…
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Commodities strategist, expert in supply chain market, procurement, forex and advisor Stablecoins. www.goldencross.io