Accelerating inflation in the US has forced investors to ditch dollar-backed assets.
In November, new G10 inflation forecasts will be released, perhaps boosting security even more. However, comments from members of the European Central Bank (ECB) and Federal Reserve policymakers might influence if gold continues to increase. According to a study conducted by Golden Brokers, if inflation remains and central banks do not respond to persistent inflationary pressures, real rates may reach new lows.
On November 4th, everything changed. Gold futures started to trade with a lot of turbulence. Safe Harbor increased 0.98 percent to $1,794 per ounce, despite the strengthening dollar, which generally moves in the opposite way of the precious metal. Despite Fed Chairman Jerome Powell’s statements on inflation uncertainty, gold futures surged on November 7 as markets and investors began to anticipate more patient future measures by the US Federal Reserve. Gold futures increased 1.47 percent to $1,817 per ounce as a consequence.
After breaking through the $ 1,800 barrier, gold began to soar. Despite the rise in the dollar, which generally trades in the opposite direction of gold futures, gold futures have continued to rise on higher-than-expected US inflation numbers. Gold prices in safe havens rose 0.68 percent to $1,862 per ounce. Despite the US dollar reaching a three-month high, gold futures continued to rise in the second week of November due to rising inflation, which weighed on consumer sentiment. As of November 15, gold futures were trading at $1,859 per ounce.
Analysts predict the rally would come to a halt if gold falls below the current support level of $1,844. On the other hand, a break over the present resistance level of $ 1,867 is predicted to trigger a new rise in the precious metal, bringing its price beyond the $ 1,900 mark. As gold prices continue to increase, investors are seeking for a good entry point with a positive view for the future.