28/02/2024 8:00 PM

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Gold Prices Rise as Dollar Profits Fall After Poor US Data

Trends - U.S. gold - Business Recorder

According to CNBC news, the gold pricerose on August 23 2022, after 6 conservative sessions of huge losses. The reason is that the Treasury yields and dollar plunged after the US trade activity data release.

According to CNBC news, the US gold futures started to settle at 0.7%, topping at 1,761.20 dollars. While, the private sector activities in the US contracted for a 2nd straight month during August at its feeblest in 18 months.

According to REUTERS and CNBC news, the data shows a significant reduction. Moreover, it shows that the economy weakened fast. Hence, it opens doors to the clue that the Fed will not be as aggressive with the upcoming speeches related to the interest rates.

So, according to serious analyst Edward Moya at OANDA, this is good for gold. On the other hand, the dollar started slipping at 0.5%. In return, gold has become affordable for overseas investors making the yellow metal more attractive with the decline of the US Treasury yields.

Why, as they lowered the cost holding of it. So, for this reason, now might be the right time for you to invest in gold bullion while the spot gold price is low. Another reason to buy gold directly is that many focus on Jerome Powell’s speech at the annual global central banking conference held at Jackson Hole, Wyoming, this coming Friday.

According to gold dealers, the bullion tends to suffer in a high-rate environment as it harvests no interest. For example, if the gold price can breach 1,724 dollars, the selloff is more towards $1,700. But, on the other hand, it can move above the 1,752 dollar mark, opening a path towards $1,770 or even 1,800 dollars, according to Lukman Otunga, an FXTM analyst.

Still, in the meantime, business activities across the Eurozone remain contracted for a 2nd straight month this August. According to a survey, the cost of living crisis forces consumers to refrain from spending and hurts the manufacturing sector.

In the meantime, the Eurozone is sending Europe into a recession while China is also seeing a slowdown. Hence, for gold buyers, the yellow metal will become a safe haven trade again, according to Moya. So with the gold price as it stands now, it is the best time to invest in gold bullion.

While the information is fresh in your mind and you are reading this, why not contact a local gold dealer to discuss how you can buy gold bullion today? You can do this before the price rises. With the dealer you will get sound advice on what you should invest your money on.

In addition, you can get leading market rates for precious metals from gold to silver. Hence, now is the time to buy gold, and if you have some gold you want to sell, we recommend you hold on to them until later this week as the price might start to skyrocket upwards and not down.