TDS Bank expects gold to fall to this level! by Arab Trader

2023-05-30 07:35:00

© Archyde.com TDS Bank expects gold to fall to this level!

Arabictrader.com – In a note published by the Canadian investment bank TD Securities on Monday, the bank’s economists indicated that they expect more declines in prices during the coming period, in light of its exposure to downward pressures and large selling operations.

The bank’s experts pointed out that price pressures have become difficult and stubborn, they said, as high inflation is decelerating but at a very slow pace, while the economy shows only a little bit of weakness, despite the continuation of the series of monetary tightening initiated by the US Federal Reserve. Which has continued for ten meetings so far, since last March.

TD Securities economists believe that this will lead to a continuation of strong pressures on it during the coming period, which may push it, according to estimates, to fall to a support level close to $1,900 an ounce.

And the investment bank note stated that concern that inflation may not slow down as quickly as the US Federal Reserve would like has led to a sharp correction in recent days, with a risk that gold may fall to the support level near $1,900, if it breaches the average support. Mobile 100.

The economists of the financial institution noted that inflation is not moving slowly, but rather it has risen according to the data on the personal consumption expenditure index at its basic value, which may prompt the US Federal Reserve to raise interest rates more than the market determined, and this may be bad news for purchase deals. and gold prices.

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The note added that despite the positive view of experts on gold in the long term, the short term represents downside risks for gold prices at the present time, in the event that the US economy remains strong.

In terms of trading, gold is trading today stable at $1,944.82 an ounce, with its slow movements coinciding with the closure of banks due to the Memorial Day holiday in the United States.

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