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Original Title: Buying Opportunity! Gold Plunged More Than $ 150 In Two Weeks Gold priceHe is expected to launch a counterattack.
Financial news agency FX168 (North America) reported that the price of gold lagged in previous trading days and rose slightly on Wednesday (November 25). A weaker US dollar helped offset the impact of investors who turned to the stock market and other high-risk assets.
In the US market, spot gold once rose about 0.6%, hitting a daily high of US $ 1,817.64 per ounce, and has now fallen from its peak. Spot gold hit its lowest level since July 17 at $ 1,800.01 an ounce on Tuesday.
(30 Minute Gold Spot Chart, Source: FX168)
Independent analyst Robin Bhar said: “You are clearly looking for bargains right now. The price of gold has fallen more than $ 150 in the last two weeks, and investors are taking this opportunity to build positions.”
The US dollar index remains near its lows in the past three months, making US dollar-denominated gold cheaper for buyers in other currencies.
Sunilkumar Katke, head of currency and commodities at Axis Securities, said a weaker US dollar is a good opportunity for investors who did not buy gold in March.
Analysts do not expect gold prices to rebound immediately, as market optimism about the new crown vaccine and the smooth transfer of power in Washington have pushed the stock market higher.
StoneX analyst Rhona O’Connell said gold prices could consolidate. “Vaccines cannot cure disease, and accelerating infection rates are a major concern. This is not only a humanitarian problem but also an economic one. Negative interest rates will continue.”
Lower interest rates reduce the opportunity cost of holding gold in non-income generating assets. In light of the status of gold as a hedge against possible inflation from global economic stimulus measures, gold has risen more than 18% this year.
Goldman Sachs said that as more evidence of inflation emerges, the price of gold should rise again.
Right now, investors are turning their attention to the minutes of the Fed meeting scheduled to be announced at 11am Western Time Wednesday (3am Beijing time Thursday).
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