The world gold market was under pressure due to the increase in US Treasury bond yields and the USD index. Yields on 10-year US Treasuries hit their highest level in 15 years. The USD index recorded a 9-week high, closing the session at 103 points.
Bond yields rose ahead of the possibility that the US Federal Reserve (Fed) would maintain the current high interest rates, not to mention the Fed may continue to raise interest rates in September. That creates a challenging environment for gold, which means gold prices are unlikely to rise in the near term.
Phillip Streible, chief market strategist at Blue Line Futures, said that gold faces a lot of pressure to compete with other investment channels that yield 4-5% like bonds. Gold is not the ideal asset class right now.
Gold price forecast
According to Kitco News' latest weekly gold survey, Wall Street analysts see a significant drop in gold prices in the near term. Investors expect the Fed to keep rates in the 5.25%-5.5% range through 2024.
Ricardo Evangelista, senior analyst at ActivTrades said that in the long run, US interest rates will rise, supporting the dollar. This is bad news for precious metals.
In that context, the gold price may decrease, fluctuating around 1,890.4 USD/ounce, equivalent to 54.6 million VND/tael.
Bond yields rose ahead of the possibility that the US Federal Reserve (Fed) would maintain the current high interest rates, not to mention the Fed may continue to raise interest rates in September. That creates a challenging environment for gold, which means gold prices are unlikely to rise in the near term.
Phillip Streible, chief market strategist at Blue Line Futures, said that gold faces a lot of pressure to compete with other investment channels that yield 4-5% like bonds. Gold is not the ideal asset class right now.
Gold price forecast
According to Kitco News' latest weekly gold survey, Wall Street analysts see a significant drop in gold prices in the near term. Investors expect the Fed to keep rates in the 5.25%-5.5% range through 2024.
Ricardo Evangelista, senior analyst at ActivTrades said that in the long run, US interest rates will rise, supporting the dollar. This is bad news for precious metals.
In that context, the gold price may decrease, fluctuating around 1,890.4 USD/ounce, equivalent to 54.6 million VND/tael.
