Will the Gold rally continue? [Video]
|Gold prices hovering around $1900 an ounce on Tuesday as concerns over new lockdown measures in Britain, Europe and the United States’ renewed the precious metal's safe-haven appeal.
On Tuesday, the British government announced a range of new lockdown restrictions for up to six months to fight a "second wave" of COVID-19 infections taking place across the UK. New measures are also expected to be introduced in Europe and the United States.
The threat of tough new restrictions spooked global equity markets on Monday – triggering one of the biggest single-day drops, since the coronavirus sell-off in March.
Whilst there is no doubt that the long-term bull-market for gold remains intact, in the near-term prices will remain sensitive to the rapidly-changing economic, political and financial landscape.
Looking ahead, traders will be closely monitoring speeches by Federal Reserve committee members, including Fed Chair Jerome Powell, who will appear before Congressional committees this week.
Last month, the Fed announced that the central bank’s inflation target could exceed 2%, which would drive inflation higher over the longer run, whilst keeping interest rates near zero 2023. Traders will be looking for clues on how the Fed actually intends to achieve its new goal of higher inflation.
Expect higher than usual volatility over this next quarter, as we enter a very exciting and highly lucrative event-driven period.
Where are prices heading next? Watch The Gold & Silver Club Commodity Report now with Phil Carr for the latest price forecasts and predictions:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.