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Investing.com – Updated at 12:40pm GMT
Gold rose during these moments of today’s trading, after severe rhetoric in prices during the past few hours, and rose by 0.5% at $1966 an ounce.
While US gold futures rose 0.7% to 1985 dollars.
It decreased by 0.45%, to score 102 points.
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Gold prices are witnessing during these moments of trading, today, Tuesday, noticeable discrepancies between futures and spot contracts, but prices have not settled on a clear direction so far, whether up or down.
This flop came after statements during the past few hours, as well as the precious metal being affected as a safe haven by the improvement in risk appetite after regulators’ efforts to calm concerns about the global banking system.
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Gold and the dollar now
It fell by 0.1% at $1,955 an ounce.
While US gold futures rose 0.15% to 1974 dollars.
It decreased by 0.2%, to record 102.31 points.
The two-year yield rose 2.08% to 4.0474%. The 10-year bond yield rose 1.07% to 3.566%. The rise in bond yields during yesterday’s trading had a significant role in the decline and confusion of gold prices.
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Gold settled yesterday
Yesterday, Monday, it fell more than 1 percent, as fears of a crisis in the banking system receded, prompting investors to reduce transactions in safe havens and turn to riskier assets such as stocks and oil.
And it fell 1.2 percent to 1952.95 an ounce by 18:10 GMT. US gold futures fell 1.5 percent, to settle at $1,953.80.
There is a calm in the markets and a return to some risky assets, said Philip Stripel, chief market strategist at Blue Line Futures in Chicago.
Reaching a buyer for Silicon Valley bank deposits and loans helped Wall Street’s main indices open higher, which in turn led gold to fall below the $2,000 barrier it breached last week.
Gold towards the 2150?
“It appears that the US dollar is stabilizing, and this should lead to new buying in the gold market,” said Clifford Bennett, chief economist at ACY Securities.
Bennett added, “Gold is still a ‘safe haven’ in light of the continuing risks in the banking sector, as the risks of contagion still exist, contrary to what the market would like to believe that the crisis is over.”
And gold had lost more than 1% on Monday, as investors reduced their dealings in safe-haven assets and turned to high-risk assets after the First Citizens Bankers announced the acquisition of deposits and loans of the collapsed Silicon Valley bank.
Precious metals company Heraeus said: “In the near term, gold may struggle to breach new highs… However, with Federal interest rate cuts looming once the US economy enters a recession, bond yields are likely to decline and the price of gold may resume its rally.” “.
While Wang Tao, a technical analyst, told Reuters: “Gold may break the resistance at $2,070 in the second quarter, and rise towards $2,148.”
Federal remarks
Federal Reserve member Philip Jefferson said on Monday that the US Federal Reserve is “still studying” the impact of increases on the economy and inflation.
He added: Once the demand rate declines, inflation will return to the Fed’s target of 2%.
Jefferson asserted that the current rate of inflation is very high and has maintained the high level for longer than expected, and that his goal is to reduce inflation as rapidly as possible. He said that this reduction will take time due to the fact that reducing some inflationary factors needs time.
Jefferson predicted that inflation will return to 2% levels soon, although the components of inflation will continue and the US Federal Reserve will continue to monitor the situation. But it is a signal that we should be careful and avoid causing new damage to the economy.
He also said: “If the size of small and regional banks shrinks, this could cause a change in lending standards, and it could affect small businesses disproportionately. It is necessary for the Fed to be aware of what is happening in the banking sector in terms of risks.”
Technical analysis of gold:
