Gold to rise, US dollar to decline on slow rate – Analysts

Gold to rise, US dollar to decline on slow rate – Analysts
(Photo credit: Arabianeye - Reuters)

By: Mahmoud Gamal

Mubasher: The US Federal Reserve's latest hints about the slowdown of increasing the interest rate this year will encourage investors to buy gold this week and push the US dollar to more declines, according to analysts.

In last week's trades, spot gold grew 2.4% to $1,229.80 an ounce.

In the meantime, the dollar index edged down 0.98% to 100.14.

On Wednesday, the US Fed decided to raise interest rates to between 0.75% and 1.00%.

The Fed's latest hints concerning tightening its financial policy in the coming period will trigger more declines of the US dollar below its support level of 100 points, technical analyst Alaa Farhan said.

Farhan expected that the dollar's index would return to rise and reach the level of 102 points, if US President Donald Trump discussed the strength of the economy in his coming speech.

Technical analyst Ragab Hamed told Mubasher that gold is expected to target the levels of $1,230 – $1,260, after the blurry vision of the Fed's statement.

He added that the return of investment funds to the actual purchase of gold in North Asia markets would keep its price above $1,210.

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Source: Mubasher Exclusive