Gold and Silver fundamental analysis
Tuesday , April 13 2021
Home / Market Analysis / Fundamental / Gold and Silver fundamental analysis
fundamental and Gold Analysis

Gold and Silver fundamental analysis

Today’s slight decline led to the strengthening of the nominal dollar, increased yields of 10-year US Treasury notes, and market participants bidding on both precious metals.

5:15 PM EST, as gold futures basis, the most active June 2021 Comex contract delivered $ 4.50 (-0.26%) and is currently fixed at $ 1738.50. The silver futures base, the most active May 2021 Comex contract, declined by $ 0.027 (-0.11%) and is currently fixed at 25.20.

According to the Kitco Gold Index (KGX), spot or forex gold is currently stable at $ 1737.60 after declining by $ 6.00. Upon closer inspection, $ 3.90 of that decline is directly attributable to sellers, with the remaining decrease of $ 2.10 being the result of nominal dollar strength. Currently, the US Dollar Index is fixed at 92.41 after gaining 0.062 points or + 0.07%.

Minutes of last month’s FOMC meeting were released today. He indicated that members of the Federal Reserve unanimously recommended dropping the Fed Fund’s rate between zero and 1/4%. This is in line with the Fed’s mandate to drop interest rates where they are until at least 2021 and likely to be much lower by 2022 or 2023.

The minutes from the March FOMC meeting began, “The differential period maturing over the next several years by interest rate futures has increased significantly, allegedly by market participants of the expected path to the target range for federal funds.”Reflects assurance. rate. Since the January meeting, the date of the first increase in the target range for the rate of federal funds implied by a straightforward reed of market pricing peaked in the first quarter of 2023, and the implied target rate increased nearly at the end of 2023 Gained 50 basis points. ”

However, there are strong indications that in many ways the economy in the United States is beginning to rebound further as news of recent costs released by the United States government becomes alarming.

According to The Hill, “the federal deficit increased to $ 736 billion in the first four months of the fiscal year.” The National Debt Hill forecast for 2021 is on track to reach 2.3 trillion, resulting in a White House adviser saying the US economic outlook is in a ‘really dire situation’.

Current forecasts through Trading Economics.com state that, according to the Trading Economics Global Macro Model and analysts’ expectations, government debt to GDP in the United States is expected to reach 125.00 per cent by the end of 2021.

While financial equity markets continued to make large gains and reached new record highs, it lags behind the rising national debt. Our national debt in the United States is now the largest recorded debt in history. The economic decline from this rising debt will continue to support higher gold prices.

Share on

About Dwipen Gogoi

Dwipen Gogoi, MBA (IB and IT) and PGDFT from Pune. (Technical Analyst of AliceBlue) I am a You Tuber, Blogger and doing Technical Analysis last 10 years in Stock, Commodity and Forex Market. i am creating various trading strategies for day traders, swing traders, scalp traders.

Check Also

Gold futures basis the most active June 2021 Comex contract is currently fixed at $1756.50

The weakness of the dollar was partly responsible for today’s gains, but most of the …

Leave a Reply

Your email address will not be published. Required fields are marked *