In morning trading session 24/7, spot gold price fell 0.08% to $1,959.5 per ounce, according to Kitco. Gold for August delivery also fell 0.17% to $1,963.35.
Gold prices fell in Monday morning session (July 24) as the dollar anchored around a more than 1-week peak set last week, while investors looked to policy meetings of major central banks, especially the US Federal Reserve (Fed).
The dollar continues to rise making gold less attractive to buyers in other currencies. At the time of the survey, the USD Index, a measure of the greenback's strength against other currencies in a basket of currencies, was up 0.03% to 100.825.
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The gold market reacted with a stronger dollar last week after the Bank of Japan (BoJ) signaled that it looks likely to keep monetary policy extremely accommodative this week and sees no urgency in adjusting its yield-curve control program, said Edward Moya, senior market analyst at OANDA.
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Lusk said that gold could drop by $50 this week if the Fed remains hawkish right after the rate hike decision.
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However, in the long term, the Fed has very little impact on the price trend as some commodities cannot help but increase in price due to supply problems.
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James Stanley, market strategist at StoneX, sees gold prices rising ahead of the Fed meeting. He said that gold's ability to hold above $1,950 an ounce would help the precious metal retest $2,000 before the Fed makes its next interest rate decision. Stanley added that gold will reverse after the Fed's decision.
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Among Wall Street analysts polled by Kitco News gold, 42% are bullish on gold; 16% expect gold prices to fall. Meanwhile, 60% of retail investors who took part in online Main Street polls were optimistic about gold, and 26% more bearish.
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James Stanley, market strategist at StoneX, predicts a sharp increase in gold prices, but then the price of gold could fall suddenly after the Fed makes a decision to raise interest rates.
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James Stanley thinks that the price of gold can fall by $ 50 if the Fed shows a tough attitude immediately after raising interest rates
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Meanwhile, 369 votes were cast in online polls. Of these, 221 respondents, or 60%, expect gold prices to increase in the near future. Another 95 people, or 26%, think the price of gold will be lower, while the remaining 53, or 14%, think the price of gold will go flat.
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Sean Lusk, co-head of trade hedging at Walsh Trading, said he remains bullish on gold given the Fed's difficulty in controlling inflationary pressures as supply issues still dominate commodity markets. However, in the short term, gold is likely to remain under pressure.
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Gold futures for delivery in August 2023 on the Comex New York exchange fell $ 4.3, futures fell 0.22% to $ 1,960.6 / ounce.
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In the foreign exchange market, the US Dollar Index (DXY) opened this morning at 101.08 points.
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Gold futures for delivery in August 2023 on the Comex New York exchange fell $ 4.3, futures fell 0.22% to $ 1,960.6 / ounce.
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Sean Lusk, co-head of trade hedging at Walsh Trading, said he remains bullish on gold given the Fed's difficulty in controlling inflationary pressures as supply issues still dominate the overall commodity market.
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Lusk said that gold could drop by $50 this week if the Fed remains hawkish right after the rate hike decision. However, in the long term, the Fed has very little impact on the price trend as some commodities cannot help but increase in price due to supply problems. Many goods are in short supply. For that reason, he advises to continue buying gold when the price drops.
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The Fed's monetary policy meeting (July 25-26) will be the most prominent event that dominates the gold market. Markets are almost certain the central bank will continue to raise interest rates by 25 basis points. Some analysts believe that the Fed's rate hike will support the dollar and put pressure on gold.
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Summarizing last week, the domestic gold price turned down slightly by 100 thousand dong/tael in both buying and selling direction, despite a slight increase in the world.
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“Any unexpected dovish signal, especially from the Fed, could positively support gold, with fresh opportunities to move towards the $2,000 mark,” Carlo Alberto De Casa, market analyst at Kinesis Money, said in a note.