The trading space has become a puzzle for investors, especially since the Covid 19 pandemic swept the world. The invisible enemy has touched everyone, and every sphere has noticed its traces. However, given that a vaccine against the virus already exists, we have reason to hope.
Gold increased in Asia on Wednesday. For investors, this yellow metal seems to have become a refuge. The number of people willing to take risks has decreased due to the recent figures of Covid 19.
According to the latest data, the impact of new coronavirus cases led to an increase in the price of gold. Does this mean that the dollar might weaken?
According to the latest data, gold futures increase to $ 1,791.15 by 0.19%.
According to Jeffrey Halley, senior analyst at OANDA Asia Pacific Market, the new variant of the virus appears to have a material impact on global recovery. In this situation, gold is likely to be more protected.
The Reserve Bank of New Zealand left the interest rate unchanged at 0.25%. The COVID-19 infection led to a six-month shutdown in the country, which did not implement the central bank’s plan to raise interest rates.
Whether the Gold Will Increase
Investors are waiting for instructions on reducing assets and raising interest rates.
Halley said the gold fortune would have a result shortly. It will be known whether this will signal that assets will decline in September. If the dollar strengthens, gold is likely to fall below $ 1700.
Minneapolis Federal Federation President Neel Kashkari said the reduction in assets would be reasonable by the end of 2021. According to the chairman, Fed chairman, Jerome Powell, it remains unclear whether the recent COVID-19 delta option will have a noticeable impact.
As for other precious metals, silver increased by 0.7%, platinum by 1.3%. After reaching a two-month low, it increased by 1.2%.
Trade experts are reluctant to preconceived notions because the consequences of spreading the virus will be known to us over a much more extended period. As far as the current situation is concerned, it is possible that with the stabilization of the case, the price of gold will fall again, and the dollar will strengthen.
There is no guarantee of gold stability at this stage, although increasing its price already means risk-averse investors.
In the coming days, we will find out how much gold continues to up, or it will up at all.