Gold price for Monday is up 0.17% and could go even higher.
The price spiked immediately coming out of the weekend, and then went through some erratic movements until it steadied at a price of $2,018.32. It looks like the rate may increase throughout the day.
Gold moved up in January, but some experts are suggesting that it is because of limited data and price adjustments to account for the previous month. This may mean that the gold price is not as rosy as it looks to be.
The US dollar is cooling right now, giving gold a chance to climb. The dollar is being helped along by a lack of interest rate cuts. If those cuts happen later in the year, then the dollar could depreciate, and gold may gain some more ground to counterbalance.
Gold is now up for three consecutive sessions, which could be the end of the line at this point or could provide the support for the price to go even higher.
Watch Inflation to Predict Gold Movement
The key indicator that will push the price of gold one way or another will likely be inflation. There are hopes that it will start to drop soon, but after inflation rose so high during and after the pandemic, its cooldown has not happened as quickly as anyone would have liked.
Economists are watching inflation very closely, as that will be a prime indicator as to where gold prices go. If inflation continues to stick, then the gold price will have trouble making any progress. Inflation could be affected by interest rate cuts for the US banks that may happen later this year. Also watch for economic factors that move inflation, like GDP and unemployment rates. These indicators help push inflation one way or another, and as economic factors improve, inflation will naturally start to subside.
Source: fxleaders
