XAUUSD Gold is ready for the current recovery, positive moves ar
For the first time in recent weeks, gold is looking attractive again. If you like gold that costs more than $2,000, it's currently selling for almost $1.8,000. But is finding a buyer the important question? A sharp decline of $130 (6.7%) in a few weeks (from the September 21st high) means that gold prices are technically oversold and are likely moving away from this long-term support level. This is likely due to a short-term rebound. Bond yields fell sharply on Wednesday, and oil prices have fallen sharply this week (leading to deflation).
What is the long-term outlook for gold?
There is no doubt about the long-term bullish outlook for gold. In view of high inflation, the value of fiat currencies has continued to decline since the beginning of the year. Gold had a big rally last time, but if it really is an effective inflation hedge, gold will shine even more.
As government bond prices collapsed, yields rose to multi-year highs, increasing the opportunity cost of holding non-interest-bearing products. However, much of the Fed's aggressive interest rate adjustments are now complete, limiting the downside risk for bonds, and by extension, gold, in the near term. This does not mean that gold will necessarily bottom out any time soon. But at the same time, I don't think we're that far away. So keep an eye out for new bullish signals as they emerge.
The conflict in the Gaza Strip continued to escalate as Israel sent troops to surround roads into the Strip. This prevents even aid workers from reaching the site.
The Israeli government has called on civilians in the Gaza Strip to evacuate to ensure their safety as Israel continues its attacks on Hamas targets. With more than 800 Israelis killed and more than 2,500 injured in the Gaza Strip, UN Secretary-General António Guterres has called on both sides in the temporary conflict to stop firing.
The conflict in the Gaza Strip sent global stock markets in the US and Europe into the red last night. Concerned about the increased risk of conflict, investors sold stocks and turned to gold, an asset that guaranteed principal.
Experts have pointed out that the global economy may face daily inflation due to the Middle East conflict. Production costs are rising with the rise in crude oil prices, posing a risk to economic growth.
What is the long-term outlook for gold?
There is no doubt about the long-term bullish outlook for gold. In view of high inflation, the value of fiat currencies has continued to decline since the beginning of the year. Gold had a big rally last time, but if it really is an effective inflation hedge, gold will shine even more.
As government bond prices collapsed, yields rose to multi-year highs, increasing the opportunity cost of holding non-interest-bearing products. However, much of the Fed's aggressive interest rate adjustments are now complete, limiting the downside risk for bonds, and by extension, gold, in the near term. This does not mean that gold will necessarily bottom out any time soon. But at the same time, I don't think we're that far away. So keep an eye out for new bullish signals as they emerge.
The conflict in the Gaza Strip continued to escalate as Israel sent troops to surround roads into the Strip. This prevents even aid workers from reaching the site.
The Israeli government has called on civilians in the Gaza Strip to evacuate to ensure their safety as Israel continues its attacks on Hamas targets. With more than 800 Israelis killed and more than 2,500 injured in the Gaza Strip, UN Secretary-General António Guterres has called on both sides in the temporary conflict to stop firing.
The conflict in the Gaza Strip sent global stock markets in the US and Europe into the red last night. Concerned about the increased risk of conflict, investors sold stocks and turned to gold, an asset that guaranteed principal.
Experts have pointed out that the global economy may face daily inflation due to the Middle East conflict. Production costs are rising with the rise in crude oil prices, posing a risk to economic growth.
