Quote on the gold price increase from Mr. Sachin Kothari, Director at Augmont Gold For All
This week, gold prices have increased by 3% and close to $2000 again as expectations of a definite Fed pause have been bolstered by lower-than-expected U.S. inflation figures. Demand for safe haven assets increased as worries about an oncoming global recession were raised by the eurozone’s and Japan’s weak economic reports. The largest lift to the yellow metal, however, came on Thursday when numbers revealed that, for the fourth consecutive week, U.S. jobless claims increased more than anticipated, indicating a further weakening in the labour market. The bulls in metals are focusing on how the Fed’s more accommodating policies are continuing to weaken the currency, driving down Treasury rates, and increasing demand for gold globally now that interest rates may have peaked. The next resistance for Gold is $2018 (Rs 61500) and $2045 (Rs 62500).
– Mr. Sachin Kothari, Director at Augmont Gold For All