It was just this week when the prices of the precious metal “Gold”, started making a comeback following a sharp fall. While the investors are hoping that the prices for gold are now going to pick up the pace as normal, the analysts have a different estimation that they have made.
According to the reports, the analysts have decided to stay on the bearish side of gold. As per the analysts, they would remain pessimistic when it comes to gold making a comeback in terms of its price. The analysts do not have many hopes in regards to the price of gold and are not looking forward to a bright outlook for the metal.
The data surrounding the price of gold shows that the precious metal ended up experiencing a four-month low in terms of prices. The data shows that on the evening of Sunday, August 8, the price of gold went all the way down to $1,677.9 per ounce.
As of Thursday, August 12, 2021, the price for gold was floating around $1,740 per ounce. This was the price for gold on the Thursday morning trade in the Asian markets. Unfortunately, gold has not been able to relive the glory that it had achieved at the beginning of 2021. If we look at the stats, gold had hit an all-time high of $1,900 per ounce at the beginning of 2021.
The drop in the price of gold is mainly due to the surge in the jobs that are currently being observed all over the world, especially, the United States. As people are going back to their jobs and the number of jobs is constantly rising around the world, people are now investing more in fiat currencies.
The price of gold and the USD have a completely inverse relationship. If the price of the dollar rises versus other currencies, the prices for gold move towards a downward trend. If the price of the USD rises, then the investors look forward to purchasing the USD instead of gold, which decreases its demand.
The data shows that in the Asian markets, the initial gold sell-off was triggered on Monday, August 9, 2021. It was due to the rising price of the US dollar. As the USD’s demand increased, investors started selling gold and invested more in the USD.
The analysts have speculated that the rise in the price of the USD is because of the increase in the payrolls starting from the month of July. The data shows that in the month of July, the nonfarm payrolls continued to rise and went all the way up to 943,000.