As the Market Struggles International Experts See Strong Positive Outlook for Gold in Short Term

FinancialNewsMedia.com News Commentary

PALM BEACH,  Fla., July 20, 2021 /PRNewswire/ -- A number of experts who follow Gold see more room for it to rise in both the short and long terms. First it was the pandemic that helped push its prices to all-time highs, and in the near future it may well be inflation that keeps it increasing. One follower of the market, The Economic Times, said that Gold prices rose nearly 7 per cent in May, marking the second green candle for the year so far. The yellow metal traded with high volatility in the range of $1,765 to $1,913 and marked the highest level in four and half months. Similarly, silver also traded with high volatility and ranged from $25.85 to $28.89. This move was aided amidst volatility in industrial metals, US Treasury yields and the US dollar.   It said: "Increased inflationary pressures as a result of unprecedented levels of stimulus injected into the global economy as well as expectations that interest rates will remain close to zero for a longer period provided support to the metal. Fed officials have signaled that the factors driving the change in inflation are mostly transient, such as heavy fiscal stimulus and supply chain bottlenecks, and that is likely to fall back later in the year. The US Treasury Secretary had in the recent past sounded optimistic on US growth and downplayed inflation… April's weak employment data have lent further support to the viewpoint that the Fed will continue to remain accommodative for a longer period or, at least, until the labor market moves closer to its full potential. It is important to note that the US central bank has hinted repeatedly that substantial progress in the economy would be needed before officials consider any changes in the monetary policy."   Active stocks in the mining markets this week include St. James Gold Corp. (OTCQB: LRDJF) (TSX-V: LORD), Newmont Corporation (NYSE: NEM) (TSX: NGT), Kinross Gold Corporation (NYSE: KGC) (TSX: K), YAMANA GOLD INC. (NYSE: AUY) (TSX: YRI), Victoria Gold Corp. (OTCPK: VITFF) (TSX: VGCX).

Economic Times continued: "After falling nearly 14 per cent in the first four months, assets of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, rose by nearly 30 tonnes in May, justifying the move in metal prices. According to CFTC data, speculators raised their long positions in COMEX gold and silver in the previous month.  The prices may continue to move with a positive bias, supported by building inflationary pressures and expectations of a prolonged ultra-accommodative monetary policy from the US central bank. Investors will continue to watch upcoming economic data closely to keep a track of the post-pandemic recovery. Any future comments on inflation and interest rates by Fed officials would also be in focus since gold is used as a hedge against higher inflation."