Gold has a chance to regenerate

Troy’s

ounce gold for the third consecutive session recovers in price and by Friday, April 2, it is trading at $1,733.40. After the March “bottom” of $1,678, investors apparently felt that gold had sold out and the local dollar correction allowed some of the losses to recover.

Technical image allows you to expect recovery up to $1738/1740, but as long as the dollar is strong, something more to wait for makes no sense. On the dollar side, the rise in us government bond yields plays a role, and this factor will remain in effect for the time being.

In the run-up to the second quarter of 2021, gold may have primary support in the form of demand for precious metals from the jewellery industry, in response to a recovery in consumer demand.

The most optimistic forecast that could now be for gold is an increase on a neutral dollar and global demand to $1,800 per Trojan ounce over a quarter or more. There are no grounds yet to return to the area of $1850-1950.