Each ounce of gold lost $ 30 yesterday, down to less than $ 1,900, due to the appreciation of the US dollar and a less pessimistic IMF economic report.
Closing session 13/10, the world gold price for immediate delivery stood at 1,891 USD per ounce. This morning, the price still fluctuated around this mark.
“Disagreements in Washington about the next stimulus package in the pandemic continue to put pressure on assets like gold. As investors expect the next wave of stimulus will make the US dollar depreciate,” said David. Meger, Chief Trading Officer at High Ridge Futures explains, “The IMF and others, like the Fed, have also noted that the recovery is now a bit faster than they expected. Therefore, we expect demand. stimulus in the world will have a smaller scale “.
Yesterday, the greenback rose 0.5% against other major currencies, after House of Representatives Speaker Nancy Pelosi said the latest stimulus package proposed by President Donald Trump did not address demand. of this country.
In a report yesterday, the International Monetary Fund (IMF) said that the global economy “somewhat less pessimistic” when rich countries and China recovered faster than forecast. “Gold prices fluctuate according to stimulus negotiations in the US. The latest deadlock has taken away the short-term growth momentum for precious metals,” said Edward Moya, senior market analyst at OANDA. However, this means we will have a later stimulus, possibly early next year. Gold will then go up.
Gold is considered a hedge against inflation and currency devaluation. The precious metal has risen 25% this year as countries give massive stimulus to ease the impact of the pandemic.
Ha Thu (Reuters, Kitco)