ZFX: Hopes of economic recovery boosts optimism. Gold price is steady around $1700 level

Gold market was under pressure recently. Although the China-US tension is still a concern, investor sentiment has improved a lot due to the good figures in Non Farm Payrolls last Friday.

Risk appetite is driven by the improving economic signals, such as the rising US Treasury yield, the strengthening of the oil prices. Investors now are betting on the restarting of the global economy, which hit the safe-haven gold, causing a sharp drop to $1670 level last week.

But this week, gold price bounces back to the $1700 level again, despite the “risk on” mode.

It should be noticed that there are several bullish views for the gold market. First, the dollar was obviously a downtrend recently, making the decline of the gold price was just limited. In addition, the tension between China and the US is still brewing. Gold market is always attractive to those safe-haven money. Also, central banks around the world will most likely continue to implement aggressive monetary policies.

This week, investors are closely monitoring the outcome of the FOMC meeting. It is reported that the Fed may manage the “Yield Curve” by its unlimited QE policy. A lower interest rate expectation can be very supportive to the gold market.

Overall, the good signs from the market may weaken the need for safe- haven, however, the gold price may not be so bearish, standing at $1700 in the coming days.

Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.