The price of gold in the morning part of Monday’s session is up towards $ 1,840. per ounce, when the market tries to estimate the effects of the ban on the import of Russian gold issued by some of the G7 countries.
Gold goes up on Monday
Spot gold on Monday morning rose 0.6% to $ 1,838. per ounce, continuing the increase from Friday, when the gold went up by a modest 0.25%. Relative to the beginning of the year, the precious metal price gained 0.5%. Four countries from the G7 group introduced a ban on the import of Russian gold on Sunday. This is a move aimed at tightening sanctions against Moscow, as well as an attempt to cut funds off Russia to finance military operations in Ukraine.
Spot gold rate. Source: tradingview.com – The G7 ban on Russian gold imports seems to provide some short-term support (…). Jeffrey Halley, OANDA Senior Analyst, noted. “But in reality this is mostly some kind of test for the group, and I don’t expect it to represent a structural shift in supply / demand outlook that will support prices. Inflation remains high and is becoming a global problem. Gold is seen as a hedge against inflation, but higher interest rates raise the opportunity cost of owning a gold that is interest-free, unlike government bonds.
Also check: Euro to dollar exchange rate (EUR / USD): or $ 1.06 is in range? Thus, information about hawkish steps or plans of central banks is putting pressure on the price of the precious metal. Two US central bankers argued on Friday in favor of further sharp interest rate hikes to stem the spike in prices, even as investors welcomed economic data showing that inflation expectations were less worrying than initially feared.
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I WANT TO TRADE CFDs ON RAW MATERIALS 77% of retail investor accounts lose money when trading CFDs with this provider. Consider whether you can afford the high risk of losing your money. – The significant deterioration in economic data is projected to support gold prices in the future. – commented Skerdian Meta, FX Leaders analyst. Overall, we will continue to recommend the bullish trend, backed by the 50-period EMA average, extending support close to $ 1,822. However, we are unlikely to see a legitimate buy signal unless the price breaks below the $ 1,850 mark. per ounce and will stay above that level for longer. – added.
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