David Lennox, an analyst at investment firm Fat Prophets, believes that in the future, the value of gold will receive support from accelerating inflation in the United States and weakening the US national currency.
"Recently, the dollar has been showing high volatility. In addition, many investors leave the stock market. Under these conditions, gold is once again becoming an attractive asset for capital preservation. Increasing demand for precious metals by investors is an excellent supporting factor for him," the expert said.
"I believe that in the coming years, investors should closely monitor the level of inflation in the United States and the course of the American national currency, since these two factors will have a significant impact on the gold market. Despite the previously expected growth of the dollar index to 100 points, it could hardly climb to 95-96 points. I think that the mark of 100 points is unlikely to be reached, and this is a very good sign for the precious metal," he added.
"The increase in interest rates by the Fed and the imposition of import duties by Washington are already taken into account by the markets in the current dollar rate and gold value. In the future, inflation in the US should come to the fore. It is assumed that it can show faster growth than previously predicted. In addition, if the dollar index stays at a level of 96 points for a long time, the price of gold may rise," said D. Lennox.
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