News Alert: Gold prices dropped this week and analysts predict they will keep falling

Gold prices rose slightly after the sharp decline earlier this week, but analysts are still pessimistic about the precious metal’s forecast

Gold prices fell to a four-month low at $1,677.9 an ounce on Sunday evening. The metal traded around $1,740 an ounce in Asian trading Thursday morning, while it was still around $1,900 earlier this year.

Analysts attributed the adversary to a stronger-than-expected US jobs report and a rush to buy dollars in response.

There is a correlation between gold prices and the green dollar. As the dollar strengthens against other currencies, as other currencies rise, the price of gold will fall, reducing demand.

Vivek Dhar, a commodities analyst at Commonwealth Bank, said Monday’s initial gold sales were driven by the Asian market buying US dollars and selling gold since last Friday in response to strong US fees in July. Australia, a celebration on Wednesday.

Nonfarm payrolls rose 943,000 in July, with the Dow Jones predicting 845,000 new jobs, the Bureau of Labor Statistics said on Friday.

News Alert: Gold prices dropped this week and analysts predict they will keep falling:

While gold has since rebounded some of its losses, Dhar said it was “difficult to rise on the precious metal” given that he witnessed US monetary policy.

As the economy recovers from the pandemic, the Federal Reserve is expected to pull back on monetary easing and slow stimulus efforts. The US Federal Reserve has kept interest rates at zero, but officials have warned that increases could come soon, especially at a time when inflation is high.

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But Dominic Schnider, chief investment officer at UBS Global Wealth Management, predicts actual returns will be “less negative” and gold will be more negative. CNBC told Street Signs Asia on Wednesday that it expects an exit from the gold-listed equities and futures markets.

As real incomes increase, the price of gold decreases and vice versa. In such a scenario, gold, a nonprofit asset, has a better chance of catching up, because investors put forward interest they might otherwise have earned to make a profit.

“I think you’re going to see a little bit more flow. I’m not surprised to see anything else in the ETF and futures market at 20 million ounces at a time,” Schnider said. “It’s more of a downside, then … we tell people tactically to defend their position, or at least buy the top and make some money.”

“A strong U.S. dollar indicates that gold prices should trend lower as U.S. real incomes gradually increase over 10 [years],” Dhar said.

He predicts that the price of gold will drop to $1,700 in the first quarter of 2022.

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