Traders attribute it all to the US Fed's constant talk of rate hikes, the highest in 28 years this month, as the US central bank struggles to contain the fastest inflation in four decades. However, some gold sellers have reason to be positive about short-term prospects.
“The second quarter was undoubtedly a disappointment for the gold market participants. But the upside is that this is probably the right time for a rebound,” said Phillip Strable, a precious metals strategist at Blue Line Futures in Chicago, who admitted to buying gold at under $1,800 on Thursday. per ounce.
“Usually this is what happens: people start to refuse gold, and then it returns to the front lines of the news,” Strable said. “The strength of the dollar is likely to dissipate when the Fed can no longer surprise us with rate hikes. And then bond yields will go up again, which indicates inflation, which is good for gold.”