Gold looks set for another weekly gain even with today’s slight dip in the price as investors remain keen to hold on to their golden safety blanket as the latest round of corporate earnings starts to gain pace.
The next week should provide a much clearer indication of the true health of the global economy with the Federal Reserve announcing its latest interest rate decision as well as the results of a whole slew of major corporates. So far, market confidence has been very fragile and this has kept gold well supported, even with the Fed set to hike rates again next week.
The signs now are that the Fed’s highly anticipated increase for July may prove to be the final one of the current cycle as traders have dialled down expectations of another hike in September and this too is keeping the price of gold buoyant.
How long gold can continue to trade at such historically high levels will be determined by how positive this round of earnings proves. If the results show that companies are successfully battling inflation and interest rate pressures then market confidence may finally pick up and interest in gold fade. If however, they show an economy struggling and heading for recession, then gold can remain well supported for a while yet.
Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience in writing about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News.
As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewable energy and the challenges of avoiding greenwash while investing sustainably.
This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.
