“Two important events had a significant impact on the rate of the yellow precious metal, namely: a sharp rise in the US dollar and an increase in the yield of US government bonds. A price rally in the stock market suggests that investors are again showing an interest in risk. In these conditions, the price of gold is under pressure and cannot continue its upward trend, ”- this is stated in the review of the bank HSBC.
“In the near term, the price of gold may re-adjust itself if investors show renewed interest in risk on the back of positive news regarding the antioxidant vaccine. In these conditions, the price of the precious metal may decline to the support level of $ 1800 per ounce. If the dollar rate and the yield on US government bonds continue to grow, then the recovery of the gold price will be a big question, "- this opinion was voiced by the bank's analysts.
However, analysts at the British bank are positive about the gold market in the long term. “The situation in the global economy remains fragile as before, which means it is very positive for the price of gold. The only question is whether the situation with the virus will worsen and how quickly a working vaccine against it will appear.
The monetary policy of the central banks of different countries of the world will be a supporting factor for the value of the precious metal. No country can overcome the epidemic crisis without a financial assistance package. Therefore, in the medium and long term, the gold price will continue to rise.