John Aaby Posted May 21, 2020 Share Posted May 21, 2020 What is the prospect for gold prices for the rest of the year? Quote Link to comment Share on other sites More sharing options...
0 Brundle Mark Posted May 22, 2020 Share Posted May 22, 2020 (edited) Hi John, thanks for asking this question. Gold fell around 1.5% yesterday after it was reported that the Russian Central Bank, which is believed to be the world’s single-largest buyer of, was not butting yellow metal in April. This triggered a minor selloff in gold, a few days after the prices hit a fresh 8-year high above $1,765. Gold traders also paid attention to a report published by JPMorgan Chase & Co that notes the expected debasement of currencies to take place in the coming years, which should directly benefit the gold prices. Debasement refers to the process where the value of a currency is decreased. Historically, governments worked to lower the value of money to have more funds to finance different projects and obligations. The debasement, in this case, should come after the massive fiscal and monetary stimulus that is highly likely to initiate the process of currency devaluation and benefit the gold prices. “Those who see in the major currencies just different shades of the same long-term liabilities should simply remain long the world’s legacy reserve currency – gold. If the U.S. continues to suck in capital and fiscal deficits overstate the risks to external financing, the payback via G-10 currencies will be concentrated in those with above average real-rate advantages to the U.S., such as the yen and Swiss franc,” it is noted in the bank’s report. Technically, gold prices are still trading in a bullish environment. A pullback towards $1,700 may facilitate the entrance of more buyers, with the mid-term target set at $1,900. Edited May 22, 2020 by Brundle Mark Quote Link to comment Share on other sites More sharing options...
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John Aaby
What is the prospect for gold prices for the rest of the year?
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