#XAUUSD @ 1,968.14 Gold Price Forecast: likely to be ultimate safe haven in event of US default – Commerzbank
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]
Gold price slumped significantly last week. However, the growing risk of a US default is set to underpin the yellow metal, economists at Commerzbank report.
“Gold price is likely to profit more than any other investments if the US defaults. After all, one reason why Gold is suitable as a safe haven is the fact that it does not yield any interest itself and thus suffers no disadvantage in an environment in which monetary policy will in all likelihood be loosened and yields will fall accordingly. This gives Gold an advantage over other conventional safe havens such as the US Dollar, the Swiss Franc and the Japanese Yen – especially just now.”
“Both the Fed and the Swiss National Bank, following their recent rate hikes, would have considerable scope to lower interest rates in the event of a crisis – such as that which a US default could trigger.”
“The Bank of Japan, which was one of the few central banks to tighten its monetary policy hardly at all in response to the significantly increased inflation and is therefore still pursuing an ultra-expansionary monetary policy, is not very likely to loosen its monetary policy any further, however, it cannot be ruled out entirely either, which tends to put the Yen too at a disadvantage as compared to Gold, albeit to a lesser extent than the Dollar and the Franc.”
[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group
