GOLD - price update 24/08/2023

The surge in the price of gold worldwide was held back by the strengthening US dollar. Recently, the US dollar has shown a significant increase in value against major currencies. The DXY index, which measures the volatility of the dollar against six major global currencies, has risen to 103.5 points after hitting a low of 997 points in mid-July.

Last week, there was a notable appreciation of the US dollar as China continued to implement loose monetary policies, resulting in further weakening of the yuan. Compared to its value at the beginning of this year, the yuan has declined by 5.6%.

Despite central banks from various countries increasing their gold purchases, it is not expected for precious metals to make significant gains while the US dollar continues to strengthen.

The Federal Reserve is anticipated to raise interest rates once again in September and maintain high rates for an extended period of time.

Comment:

With these positive developments, the market and investors are waiting for the next development of the gold price and signals from important events such as the speech of Federal Reserve Chairman Jerome Powell at the conference. Jackson Hole symposium on Friday.