#ForexChief #SmartMoney #forexnews #NFP #stocks #market #BOE #gold⠀
💵 «Smart money» prefers physical gold: isn't it time to buy a couple of bars?⠀
📊 A strong dollar puts pressure on the price of gold: the exchange price is at two-year lows, but the demand for physical gold is growing steadily. Gold bars remain attractive to the «smart investor» − this is the best investment when the market sees no alternatives.
⠀
Coins and bars are only part of an industry that includes futures markets, exchange-traded funds, institutional investor transactions, central bank transactions, and jewellery. Gold is becoming a haven for former real estate investors.
⠀
By the way, information for alarmists: gold will easily survive any nuclear explosion − none of the harmful factors will affect it. But exchange metal can suffer greatly from banal inflation.
⠀
Inflation in the UK reached a new record high of 10.1%, five times the BOE's stated target of 2%. In the spring of 2023, analysts expect annual inflation at 17%.
⠀
A strong labour market has been one of the main strengths of the American economy over the past two years. At the same time, it became a problem for the Fed, as strong wage growth exacerbated the worst inflation in 40 years.
⠀
Today, investors' attention is riveted to the employment report, which should determine the short-term direction of gold and its «sworn enemy» of the dollar. Depending on the NFP data, the price of gold will test strong protection levels.
⠀
• If the number of jobs is below the forecast (191 thousand), expectations regarding the easing of the Fed's position will intensify − we are waiting for gold in the $ 1735-1750 zone.
• If the result is closer to or higher than September (263 thousand), the Fed will continue to aggressively raise interest rates. This will be another blow for the gold bulls and will push prices into the $1600-1550 zone.
⠀
In any case, the movement of capital from financial papers and real estate to physical gold will continue.
⠀
Profits to y’all!