Gold is still not strong enough to increase price ?

Gold prices today fell to $1,917 per ounce, a decrease of $10 per ounce compared to earlier in the morning.

The decline in global gold prices continues due to the sharp increase in the US dollar following disappointing economic data released by China.

Meanwhile, the US economy is showing strong signs of recovery, with a growth rate of 2.4% in Q2/2023, exceeding expectations. Lamplay has seen a decrease of 3%. Consumer sentiment is improving.

Although the US dollar has rebounded due to positive signals from the US economy, it is expected to decline in the medium and long term. The Federal Reserve will reverse its monetary policy from tightening to easing, which will push up the US dollar. A decrease in the value of the US dollar will lead to an increase in gold prices.

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In key external markets saw the US dollar index slightly lower. Nymex crude oil prices are higher and trading around $84 a barrel. Meanwhile, the benchmark 10-year US Treasury bond yield is currently at 4.182 percent.

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Following this development, long-term US government bond yields fell, making non-yielding precious metals like gold more attractive. The dollar index, which measures the strength of the greenback against a basket of major currencies, also fell 0.2%, away from the highs recorded in the previous session.

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The gold market continues to face difficulties when the US Federal Reserve (FED) is still maintaining the monetary tightening cycle, keeping investors out of the market until the Fed has a more definitive answer on the issue. interest rate direction.

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CPI recorded a 3.0% increase in the June report. Meanwhile, the US weekly jobless claims report was slightly higher than expected. Although both reports are tilted in favor of the US Federal Reserve (Fed) will ease monetary policy, but it does not seem to be enough to reverse the trend for gold.