Gold uptrend intact but may test support levels if these factors change

Gold uptrend intact but may test support levels if these factors change

The peak in gold prices at $2,067 coincided with the weakness in the dollar against the currency majors but there has been some revival, though not significant, in the exchange rates, in the last one month. The correction in the gold prices to $1,850 an ounce, too, was in alignment with the currency strength. It seems gold has taken support at the $1,850/1,860 levels after its downward movement.

Interest rates have been low and may continue to be so for some more time due to the slow economic growth and recovery due to the pandemic. Lower interest rates reduce the opportunity cost substantially and help gold prices to stay up. The inference that can be drawn from the Federal Reserve notes, as also those of other central banks, is that of a prolonged period of lower rates.

Apart from this, inflation, too, is showing a tendency to edge higher. The Fed […]

About the author: StockMan

Please remember:

The information provided here is for general knowledge and educational purposes only.
It is not intended to be a substitute for professional financial advice.
Every individual's financial situation is unique, and what works for one person may not work for another.
Before making any investment or financial decisions, you should always consult with a qualified financial advisor who understands your specific circumstances and goals.

Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, should never be acted upon. Please be aware that any information posted on this site should not be considered to be financial advice and i am not a financial advisor.

Posting Guidelines
  • Do contribute something to the discussion
  • Do post factual information, analysis and your view on company valuations
  • Do disclose if you have an interest in a security
  • Do take our Terms of Use seriously
Do Not
  • Do not make low-content posts, unsubstantiated ramps or untruthful/misleading statements
  • Do not complain about a post unless you have reported it first, and not on the forum.
  • Do not post financial advice
  • Do not advertise or post sponsored content

Get involved!

Get Connected!

Come and join our community. Expand your network and get to know new people!


No comments yet