Gold and other assets benefit from the weaker dollar and the lower bond yields
Despite the hawkish tone of yesterday’s Fed's decision, the market saw some signs that the pace of interest rate hikes may be reduced. Moreover, the technical recession in the US may also lead to weakening of the US dollar.
Currently, yields on 10-year bonds are at their lowest since the end of March, which is supporting gold. Precious metal is gaining 1% today and trades above $1,750. From last week's low, gold added over 4%. On the other hand, "digital" gold, or Bitcoin, is also gaining. Price is approaching $24.000 and from the perspective of 2 sessions rose approx. 15%.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
If current sentiment prevails gold could climb even to $ 1800-1820 area, taking into consideration potential reverse head and shoulder formation. Source: xStation5
Gold has most likely defended a key support below $ 1,700, which reduces the likelihood of a similar scenario as in 2013. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
