Gold fell in price by more than 2% on Tuesday, February 17. China's new river has hit liquidity, and the weakening of geopolitical tensions and the depreciation of the dollar have increased the pressure, writes Reuters.
According to data from the investing platform, at 9:34 a.m. Kyiv hour, gold was trading at $4,928.46 per ounce. Thus, 1 gram of metal costs 158.98 dollars.
“The low market liquidity for the last 24 years, particularly in China and Asia, and obviously in the US, means there just hasn't been any supply to the market,” said Capital.com senior market analyst Kyle Rodda.
The markets of mainland China, Hong Kong, Singapore, Taiwan and New Korea are closed in connection with the New Year's holiday. American markets were closed on February 16th in conjunction with Presidents Day.
The US dollar index increased by 0.2% in relation to the number of currencies that have accumulated gold, prices being set in dollars, which are more valuable for other currencies.
Minutes from today's meeting of the US Federal Reserve, which will be published on the 18th, may provide further clues to investors about monetary policy. With the help of the FedWatch Tool CME, the market will immediately recover, with the first three reductions in interest rates in which there will be a redemption. Gold coins that do not generate income usually feel good in the minds of low interest rates.
On the geopolitical front, US President Donald Trump declared on 16 that he would be “in the middle” of taking part in the negotiations on Iran’s nuclear program in Geneva, and representatives of Ukraine and Russia would work together to conduct peace negotiations through Washington.
“The average upper limit for gold is located here in the region of 5120 dollars, but when the real meta comes - it will turn to highs of 5600 dollars, and then, of course, we will fall to new records"
