Over the past four months, the price of gold has increased by $240 per ounce. Tensions were rising in the Middle East but when the situation was resolved, the price of gold began to deflate. What will the trend of gold be? Let's take a look.
Mr. Warut Rungkham, Director of Analysis at YLG Bullion and Futures Company Limited, revealed the trend of gold next week with… The story of the nation The price of gold during the months of January and April rose to approximately $240 per ounce, or an increase of 6,450 baht.
The price of gold fluctuates according to geopolitical tensions. The pair is responding to the increasingly tense fighting situation in the Middle East. And it softened
Positive and negative factors to follow
– Investors in the Thai Derivatives Market or TFEX who have little risk tolerance are advised to delay trading as the TFEX market will cease trading on Monday, May 6 (Coronation Day). The TFEX market is closed and will be open again on Tuesday. As a result, there will be risks because the global gold market is still operating normally.
– The trend in US bond yields is slowing. After the US Federal Reserve (Fed) decided to maintain interest rates as expected at its last meeting. By recommending a follow-up auction of 3-month and 6-month Treasury bills, as well as an auction of 3-year notes and 30-year loan interest rates from the MBA Association.
– Bank of England (BoE) meeting. The Bank of England is expected to start cutting interest rates in August. At the March meeting, the Bank of England decided to keep interest rates at 5.25%, in line with analysts' expectations, as 8 MPC directors voted in favor of the Bank of England to keep interest rates at 5.25% at the meeting, while another decision was in favor. Bank of England reduces interest rates by 0.25% to 5.00%
For trend directiongold priceHe is Side down This is due to the rise in the value of the dollar and the yield on US bonds, which pushed the price of gold down. In response to higher-than-expected inflation and the outcome of the US Federal Reserve's May meeting, investors are concerned that the Fed will not make a decision on cutting interest rates until September or later. The possibility that there will be only one interest rate cut this year continues to create selling pressure in the gold market on an ongoing basis.
Investment strategy
If the price tests the resistance at $2,320-2,328 per ounce. I can't stand it There may be selling pressure that causes the price to drop again for a short period of time. We recommend opening a sell position for short-term speculation if the price is adjusted.
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