World yellow metal prices reached a 3-month high at the beginning of the week, boosted by increased expectations that the US Federal Reserve (Fed) will loosen monetary policy.
According to UBS analyst Giovanni Staunovo, weaker-than-expected US economic data released last week pushed US real interest rates down and this is the cause of gold's price increase.
Last week, gold prices rose about $50 as reports showed tepid construction and manufacturing spending in the US as well as downward price pressure.
Market strategist Phillip Streible of Blue Line Futures predicts that gold can easily surpass record highs as he sees upcoming events as beneficial for the precious metal. Specifically, this expert believes that in his upcoming testimony before Congress, Fed Chairman Jerome Powell may appear more dovish about his policy. Besides, a gloomy employment report will be the next catalyst for gold to break out.
According to UBS analyst Giovanni Staunovo, weaker-than-expected US economic data released last week pushed US real interest rates down and this is the cause of gold's price increase.
Last week, gold prices rose about $50 as reports showed tepid construction and manufacturing spending in the US as well as downward price pressure.
Market strategist Phillip Streible of Blue Line Futures predicts that gold can easily surpass record highs as he sees upcoming events as beneficial for the precious metal. Specifically, this expert believes that in his upcoming testimony before Congress, Fed Chairman Jerome Powell may appear more dovish about his policy. Besides, a gloomy employment report will be the next catalyst for gold to break out.
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Jess Felder, founder of Felder Report, said that a high inflation scenario is also beneficial for gold. According to him, persistently high inflation could make investors lose confidence in the US Central Bank, weaken the dollar and make gold an attractive asset.
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