The price of gold went up by 1% on Friday. If things go on like this, then it is quite possible to talk about the first weekly increase in the last three weeks. The positive was due to another correction by the US dollar, which happened after the speech of the US Fed Chair Powell. The dovish rhetoric was not to the taste of the foreign exchange markets, which immediately made the dollar sag again. In general, the prospect of a rather long period of low-interest rates in the US does not please investors, who with renewed vigor have turned their attention to the precious metals market.
The new strategy of the monetary policy of the US FRS has determined the main directions of its activity, which are the restoration of full employment of the population and the acceleration of inflation rates in the event that the Central Bank needs it to solve current problems in the economy.
The price of gold immediately increased by 1.14%, which allowed it to move to the level of $ 1,951 per troy ounce. At the same time, the support level for the precious metal amounted to $ 1,908.4 per troy ounce, and the resistance moved to the level of $ 1,987 per troy ounce. In general, over the current week, gold has already increased its value by 1%.
However, not only greenback contributes to such a positive movement in the metals market. Pressure on the markets is also coming from Japan, after the possible resignation of Prime Minister Shinzo Abe due to the deterioration of his health. This fact is also to some extent good for gold.
Meanwhile, silver also felt significant support against the backdrop of all that is happening. The metal has risen in price by 1.51% and was able to reach $ 27.45 per troy ounce. It is possible that it will close in the green zone for the second week in a row.
Most analysts say with confidence that a new long-term upward trend has entered the market, which will be supported by low-interest rates for a longer than previously expected period of time, massive stimulus in the economy, and other actions that usually stimulate demand for precious metals.
Moreover, there is another extremely important event of the year ahead - the presidential elections in the United States of America. And if current US President Donald Trump suddenly loses them and refuses to recognize his failure as legitimate, then the general turbulent situation will again force gold to grow well.
The price of palladium slightly declined by 0.01%, which moved it to the level of 2,161.1 dollars per ounce.
Platinum was also in the red zone and declines 0.21%, now with a current level of $ 926.87 per ounce.
Copper, on the other hand, rose 1.16% to $ 3.0020 per pound.