This Week Highlight - The Gold Forecast in end April


This Week Highlight - The Gold Forecast in end April
We have been predicting the Gold prices in recovery trend since few weeks ago. Try enough, the bulls are kicking in and yellow metal has climbed above USD1750 /oz last week.

While we are open to expect the yellow metal threading sideways from USD1720 - USD1760 /oz range in mid April, the protrusion above USD1760 /oz is a more than better sign for us. In April, we foresee there is a possibility to see the yellow metal prices reaching USD1800 /oz before the trend takes a breather in early May.

Literally, the market grapevines on U.S. economic worries on inflation few weeks ago has lifted the U.S. Dollar Index (USDX) to to 93.00 level. However, you may refresh the recent snippets in March that we denied the inflation due to the looming U.S. economy. The unnecessary worries on inflation is just to support Dollar for a quick lifting so the Dow and other markets could perform a healthy correction.

Currently, the Dollar Index (USDX) has fallen again to below 92.00 level after President Biden reassures of no rate hikes this year despite stronger economic recovery. Of course, his perception of such a "strong recovery" will come from the massive vaccination of achieving 200 million jabs before year-end and the injection of fiscal support.

In our opinion, we predict there might be another stimulus in Q3 season once the fiscal budget dries up in the Government balances and after the stimulus has used up. Hence, the expected drop in Dollar in coming months is a good catalyst for expecting strong Gold prices.

In May, we forecast the yellow metal will continue to rise higher after the mid-month. Don't worry about the groundless talk on inflation because the common Americans need their bread and butter through the job security more than the hypothesis of spending monies on luxurious goods.

Good luck to you if there is Gold instrument in your portfolio. The effective hedge for your weakening Dollar.

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