minus academy faq plus academy faq Check in circle Apple Android Home Magnifer Calculator Mail Email Facebook Twitter RSS Linkedin Linkedin hollower Headphones Wechats Instagram Line Mail 2 Phone Phone 2 Minus Plus Arrow right Arrow left (variant 2) Arrow right (variant 2) Brand logo Brand logo not filled Hamburger Flag of the Hong Kong Flag of the US/GB Flag of the US/GB Flag of the US/GB Flag of the China Flag of the China Flag of the China (traditional) Flag of the Taiwan Flag of the Hong Kong Flag of the Spain Flag of the Russia Flag of the France Flag of the German Flag of the Portugal Flag of the Italy Flag of the Poland Flag of the Czech Flag of the Hungary Flag of the Sweden Flag of the Bulgarian Flag of the Finland Flag of the Lithuania Flag of the Denmark Flag of the Croatia Flag of the Estonia Flag of the Norway Flag of the Romania Flag of the United Arab Emirates Flag of the United Arab Emirates Flag of the Indonesia Flag of the Malaysia Flag of the Korea Flag of the Korea Flag of the Samoa Flag of the Vietnam Flag of the Thailand Flag of the Turkey Flag of the Japan Cross Cross large User Arrow down Arrow up Cube Info list Data comunication Clock Slash
Market Outlook
Hopes of economic recovery boosts optimism | ZFX

ZFX: Hopes of economic recovery boosts optimism. Gold price is steady around $1700 level

09-06-2020 08:50

Gold market was under pressure recently. Although the China-US tension is still a concern, investor sentiment has improved a lot due to the good figures in Non Farm Payrolls last Friday.

Risk appetite is driven by the improving economic signals, such as the rising US Treasury yield, the strengthening of the oil prices. Investors now are betting on the restarting of the global economy, which hit the safe-haven gold, causing a sharp drop to $1670 level last week.

But this week, gold price bounces back to the $1700 level again, despite the “risk on” mode.

It should be noticed that there are several bullish views for the gold market. First, the dollar was obviously a downtrend recently, making the decline of the gold price was just limited. In addition, the tension between China and the US is still brewing. Gold market is always attractive to those safe-haven money. Also, central banks around the world will most likely continue to implement aggressive monetary policies.

This week, investors are closely monitoring the outcome of the FOMC meeting. It is reported that the Fed may manage the “Yield Curve” by its unlimited QE policy. A lower interest rate expectation can be very supportive to the gold market.

Overall, the good signs from the market may weaken the need for safe- haven, however, the gold price may not be so bearish, standing at $1700 in the coming days.


Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.