Gold Prices Decline After a 4-Session Climb

Date: 07 April 2021 - 21:31

News ID: ۸۸۹۳۰

NEW YORK (Market Watch) - Gold futures headed lower on Wednesday after posting gains in each of the past four trading sessions, but some experts forecast a recovery for bullion prices as questions about the state of the economy and lofty stock-market valuations persist.
Commodity investors may gather more insights about the outlook for both after the Federal Reserve releases its account of its March policy meeting at 2 p.m. Eastern Time, about a half-hour after gold futures settle.
Market participants are looking for clues about the Fed’s view on inflation and the possibility that the central bank could soon reduce its market-stimulative bond-buying program as a first step toward normalizing monetary policy.
Gold prices on Tuesday marked a fourth consecutive gain, the longest such streak in about two months.
The precious metal "had a strong beginning to the week, more so because of the dollar weakening and making lower lows,” said James Hatzigiannis, chief market strategist at Ploutus Capital Advisors.
However, "without a definitive signal that U.S. lockdowns are coming to an end, I believe there will be no interest for precious metals,” he told MarketWatch, but if the economy shows signs of picking up, people will start spending more, boosting physical demand for gold.
"Some slight positives have been developing: encouraging economic numbers from China and the U.S. and we hope demand will pick up soon,” said Hatzigiannis. Without signals that lockdowns are coming to an end in China and the U.S., "gold will most likely just be coiling around at this level and everything else is just noise.”