Federal Reserve (Fed) And Inflation - Avalanche Which Has Collected Gold Price (XAU/USD) | InstaForex

Precious Metals: What Can We Expect From Gold In The Near Future?

Relevance up to 09:00 2022-06-08 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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Exchange Rates 06.06.2022 analysis

 

The gold market remains at around $1,850 an ounce, with bullish sentiment among Wall Street analysts starting to cool as the Federal Reserve continues to aggressively raise interest rates through the end of the year.

The weekly review of gold shows that retail investors remain significantly optimistic about the precious metal as they look for assets to protect in a rising inflationary environment.

Gold prices ended last week above $1,850 an ounce, which is a critical psychological level.

 

Exchange Rates 06.06.2022 analysis

 

The precious metal managed to hold above this level on the back of stronger-than-expected employment data. On Friday, the Bureau of Labor Statistics said 390,000 jobs were created in May, beating economists' expectations of about 325,000.

Blue Line Futures chief market strategist Phillip Streible said that gold's technical outlook remains constructive; however, the fundamental outlook is hazy. Economic data support further aggressive monetary policy action.

According to Ole Hansen, head of commodity strategy at Saxo Bank, any drop in the price of gold can be seen as a long-term buying opportunity.

Last week, 15 Wall Street analysts took part in the gold survey. Among the participants, seven analysts, or 47%, were in favor of rising gold prices this week. At the same time, five analysts, or 36%, were bearish. And three analysts, or 20%, were neutral.

In online polls on Main Street, 637 votes were cast. Of these, 448 respondents, or 70%, expect gold to rise. Another 117 voters, or 18%, voted in favor of lowering prices, while 72 voters, or 11%, were neutral.

 

Exchange Rates 06.06.2022 analysis

 

The gold market is caught in a tug-of-war between rising inflation and the Fed's hawkish stance on price cuts.

Precious Metals: What Can We Expect From Gold In The Near Future?

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