Gold To Shine Brighter? Let’s Find Out2 min read
Gold prices have been on a meteoric rise in the recent past. In April, the gold prices went up by 3.7% in just a month! And May topped even that with a 5% increase in gold prices!
Digital Gold investors’ mark to market returns has been climbing every month. As per media reports, the price of the yellow metal has recovered on account of rising concerns over inflation, easing bond yields, and a weaker dollar.
As per the Informist Media poll published on June 1, the rising inflation in the US and mixed economic data is likely to keep gold prices firm this month.
According to the reports, core inflation for June, at 3.1%, also beat the estimate of 2.9% and the US Federal Reserve’s target of 2%. Globally, investors usually use gold as a hedge against rising inflation.
In addition to that, on Thursday (June 10), the European Central Bank raised its growth and inflation projections but pledged a steady flow of stimulus.
Investors are awaiting important international cues to gauge the further movement of bullion.
Gold traders will now be looking forward to Federal Reserve’s meeting next week (June 14-June 18) for guidance on its monetary policy path.
Investors hope that the rise in US inflation is likely to be transitory and Fed is likely to keep its dovish stance intact.
The expectations of higher inflation coupled with continuous monetary and fiscal stimulus measures by governments and central banks around the world are likely to support gold prices.
The bullion witnessed a dip in the first week of June and was marginally up in the second week of June providing a perfect window of opportunity.
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