Published: 2022.11.16. What factors will support the price of gold now?

What factors will support the price of gold now? - Preview

Recently, the price of gold has been able to fix well above $1,700 per ounce. Based on the euro, gold also held at least slightly above that level. On Monday, one troy ounce was worth $1,757 or EUR 1,704 on the spot market. At the same time, silver was worth $21.46 or €20.81 an ounce.
What factors can potentially affect the precious metals market in the next few days? New economic data from China will be released on Tuesday morning, with industrial production, retail sales and unemployment data for October to be announced. Now that a slightly smaller US interest rate hike is priced in, investors can turn their attention to China. The main question is, will the country loosen its tight C19 restrictions, which are also a burden on Western industrialized countries, and if so, when?
Wednesday will bring more economic data out of the US: October data on retail sales, import/export prices and industrial production. This will be followed on Thursday by data from the US housing market (the start of housing construction and building permits in October), as well as weekly data on the labor market and the Philadelphia Fed index.
On Friday, ECB President Christine Lagarde will deliver a keynote speech at the European Banking Congress in Frankfurt. In addition, a series of public appearances by high-ranking US Federal Reserve officials have been announced this week that could set stocks and the price of gold in motion. What's more, on Tuesday and Wednesday, Michael S. Barr will be speaking before the US Congress. He is Vice Chairman of the Fed's Supervisory Board.
Now the price of gold should be fixed above the level of 1700 euros, so that the recent rally does not turn out to be just a “flash in the pan”. Precious metals have recently recovered along with stock indices. A real reorientation of investors could disrupt this correlation. For example, an uptrend in the gold market can attract a large number of long speculators.
And at some point, the fiscal consequences of the crisis bailout will once again be more strongly reflected in the investment decisions of institutional investors, as the cost of government funding remains high (bond yields). A sovereign and currency crisis, as in the Eurozone until 2012, cannot be ruled out. The real estate market in the US and Europe is in an unstable state. New crisis scenarios like this are likely to lead to a "revaluation" of gold sooner or later.