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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (100955)	12/30/2020 9:36:56 AM
From: Goose94	Read Replies (1) \| Respond to of 202704

Gold: Trend in the dollar index and interest rates According to the most recent Federal Reserve meeting, it was clear that the Fed is more optimistic about the economic recovery, and this made them upgrade the growth forecast for the U.S. economy. If the virus is contained, the Fed will likely change its stance toward its forward guidance. This means that the Fed could start preparing the market to begin scaling back from its asset purchase program. If the markets perceive the Fed's stance as hawkish, it is likely to bring life to the dollar index, which could be negative for the gold price. Meanwhile, U.S. investment bank Jefferies expects gold prices to average US$2,200/oz in 2021 on the back of low interest rates and the possibility of further weakness in the US dollar.. The bank said it expected prices to strengthen further into the New Year; "Interest rates are expected to remain a supportive factor in the medium term, with the view the Fed will keep rates near zero through 2022," said Jefferies. The bank noted that over the past 12 months, the correlation between the gold price and the inverse of the US 10-year real rate has been a 0.98, "well above an already strong historical correlation of 0.75". orogenroyalties.com