About Editorial team of BIPNs

Main team of content of bipns.com. Any type of content should be approved by us.
26 05, 2026

GBP/JPY Price Forecast: Bulls test 214.50 resistance as upside momentum improves

By |2026-05-26T03:14:18+03:00May 26, 2026|Forex News, News|0 Comments

GBP/JPY trades with a positive bias on Monday as the British Pound (GBP) outperforms the Japanese Yen (JPY) amid improving market sentiment surrounding a potential US-Iran deal. At the time of writing, the cross is trading around 214.52, up 0.30% on the day.

Optimism over a possible breakthrough in negotiations between the United States (US) and Iran improved risk appetite after reports suggested both sides were making progress toward a temporary agreement that could eventually reopen the Strait of Hormuz.

However, a report from The Wall Street Journal on Monday suggested negotiations continue to face hurdles over disagreements tied to Iran’s nuclear program and sanctions relief. While key issues remain unresolved, ongoing diplomatic efforts continue to support cautious optimism in markets.

The latest headlines drag Oil prices lower, easing fears of an Oil-driven inflation shock. Still, prices remain well above pre-war levels, leaving the Japanese Yen under pressure as elevated Energy costs continue to pose a key challenge for Japan’s import-dependent economy.

Technical Analysis:

On the daily chart, GBP/JPY holds a constructive bullish bias as it grinds against the horizontal resistance at 214.50. The pair remains well above both the 100-day and 200-day Simple Moving Averages (SMAs) at 212.36 and 207.94, which suggests the broader uptrend stays intact, while a mildly positive Relative Strength Index (RSI) around 56 and a slightly positive Moving Average Convergence Divergence (MACD) reading hint at recovering upside momentum.

On the topside, immediate resistance is located at 214.50, and a sustained break above this barrier would open the way for further gains in the near term.

On the downside, initial support is seen at the 100-day SMA around 212.36, followed by the horizontal floor near 210.00, with the 200-day SMA at 207.94 reinforcing the broader bullish structure on deeper pullbacks.

(The technical analysis of this story was written with the help of an AI tool.)

Pound Sterling Price Today

The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the US Dollar.

USD EUR GBP JPY CAD AUD NZD CHF
USD -0.33% -0.48% -0.17% -0.13% -0.67% -0.41% -0.18%
EUR 0.33% -0.16% 0.15% 0.18% -0.36% -0.08% 0.13%
GBP 0.48% 0.16% 0.30% 0.34% -0.20% 0.08% 0.28%
JPY 0.17% -0.15% -0.30% 0.04% -0.53% -0.27% -0.06%
CAD 0.13% -0.18% -0.34% -0.04% -0.55% -0.29% -0.09%
AUD 0.67% 0.36% 0.20% 0.53% 0.55% 0.27% 0.48%
NZD 0.41% 0.08% -0.08% 0.27% 0.29% -0.27% 0.19%
CHF 0.18% -0.13% -0.28% 0.06% 0.09% -0.48% -0.19%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).

Source link

25 05, 2026

AUD/USD, NZD/USD and USD/JPY Forecasts – US Dollar Drifts Lower in Asia

By |2026-05-25T23:13:05+03:00May 25, 2026|Forex News, News|0 Comments

The New Zealand dollar initially pulled back a little bit during the trading session, but it has turned right back around to show signs of life. With that being the case, this is a market that I think will try to look for a move to the 0.5950 level. But again, it comes down to whether or not we can actually get real peace, I think, in the Middle East. We keep getting kind of jerked around by the headlines and the words that maybe something is coming, but then it doesn’t. So right now, I think we’re leaning to the upside, but I would not get married to the long here.

USD/JPY Technical Analysis

Source link

25 05, 2026

Euro-Pound To Rise Towards 0.88 As BoE Bets Fade: Rabobank EUR/GBP Forecast

By |2026-05-25T19:12:00+03:00May 25, 2026|Forex News, News|0 Comments

The Euro to Pound (EUR/GBP) exchange rate has stabilised near six-week lows after Sterling’s strong spring rally, but Rabobank believes the balance of risks is now shifting back in favour of the Euro as expectations for aggressive Bank of England tightening continue to unwind.

Latest — Exchange Rates:
Euro to Pound (EUR/GBP): 0.86254 (-0.12%)
Pound to Dollar (GBP/USD): 1.34964 (+0.11%)
Euro to Dollar (EUR/USD): 1.16413 (-0.01%)

According to Rabobank, Sterling’s impressive performance during March and April was driven primarily by a dramatic repricing of UK interest-rate expectations following the outbreak of the Iran conflict.

At one stage markets were pricing almost four Bank of England rate hikes this year as investors feared a prolonged inflation shock.

That view has softened considerably following weaker UK labour market and inflation releases this month.

“The combination of this week’s release of softer than expected UK labour and CPI inflation data have calmed market nerves regarding the extent of potential BoE rate hikes.”

Markets currently price around 45 basis points of tightening over the next six months, but Rabobank believes investors remain too hawkish.

“In Rabo’s view, the BoE is likely to hike only once this year to ensure that inflation expectations remain well anchored.”

The bank argues that spare capacity is continuing to build in the labour market, reducing the risk of the wage-price spiral that emerged following the 2022 energy crisis.

foreign exchange rates

“The current weakness of the UK labour market contrasts markedly with its position after the 2022 energy crisis.”

Rabobank believes any further scaling back of rate-hike expectations would remove an important source of support for Sterling.

Alongside changing monetary-policy expectations, Rabobank believes UK politics could become a renewed source of volatility for the Pound during the summer months.

Recent reassurance from potential Labour leadership contender Andy Burnham regarding adherence to current fiscal rules has helped stabilise both gilt markets and Sterling.

However, uncertainty surrounding Labour’s future leadership remains an important risk factor.

“If Labour candidate Burnham wins, he would be expected to launch a leadership contest which could result in a move to the soft left for the Labour party.”

Rabobank expects both gilts and Sterling to remain sensitive to political headlines in the run-up to any potential leadership challenge.

“UK political development will remain influential in the weeks ahead.”

EUR/GBP Forecast: Rabobank Targets 0.88 in Six Months

While Sterling has recovered from its weakest levels earlier this month, Rabobank does not expect a sustained move lower in EUR/GBP.

Instead, the bank sees a period of volatile range trading before the pair gradually trends higher later this year.

“We see scope for further choppy range trading in EUR/GBP around current levels and maintain a 6-month target of 0.88.”

That forecast would imply roughly a 2% rise from current levels and broadly aligns with the majority of major bank forecasts.

Among recent EUR to GBP rate projections, ING, Citi, SEB and Scotiabank all forecast EUR/GBP rising towards 0.89-0.90 over coming quarters, while MUFG projects 0.88 and Danske Bank expects a move towards 0.89.

Goldman Sachs remains one of the more constructive houses on Sterling in the near term but still sees EUR/GBP reaching 0.88 later this year.

Rabobank’s view is that slowing UK growth, fading Bank of England tightening expectations and lingering political uncertainty will ultimately outweigh the support Sterling has received from higher gilt yields.

Rabobank expects EUR/GBP to remain volatile in the near term but believes the broader trend points higher, with fading expectations for aggressive Bank of England tightening leaving scope for a move towards 0.88 over the next six months.

EUR/GBP Forecast: Pound’s Spring Rally Looks Vulnerable

While the Pound benefited from soaring rate-hike expectations earlier this year, Rabobank argues that softer inflation data, a weakening labour market and growing political uncertainty mean that support is beginning to fade.

Unless UK economic data reaccelerates significantly, the bank expects investors to continue reducing expectations for future BoE tightening, creating a more favourable backdrop for EUR/GBP gains into the second half of 2026.

Source link

25 05, 2026

XAG/USD Forecast Today 25/05: Silver Drifts Lower

By |2026-05-25T19:01:57+03:00May 25, 2026|Forex News, News|0 Comments


  • Silver continues to be very noisy on Friday as we have pulled back a bit despite the fact that interest rates have dropped.

  • The 50-day EMA just above continues to offer a little bit of resistance and therefore I think it does make a certain amount of sense that we just hang out in this region.

Quite frankly, I believe this is a market that given enough time probably has to make a bigger decision, but as we head into the weekend it’s difficult to get overly aggressive with anything, let alone a market that is extraordinarily volatile like silver.

Silver Continues to be Noisy

The XAG/USD market pulling back from here could open up the possibility of a test of the $70.00 level. The 200-day EMA sits just below there, and I think it opens up the possibility of even more support. To the upside, we have the $80.00 level, which of course is above the 50-day EMA.

The $80.00 level is essentially fair value from the longer-term consolidation range, which extends all the way to the $90.00 level. That $90.00 level I think is a target eventually, but it’s going to take a while to get there. If we were to break out above there, then I think you start to see silver behave extraordinarily bullish.

There is a lot of demand out there for the little bit of supply that we have for silver, but as long as interest rates remain relatively high, I think a lot of people are going to be very hesitant to buy a lot of silver. Furthermore, as we head into the weekend, we don’t know what the headlines will be, and therefore it makes sense that we have somewhat of a lackluster end.

Ready to trade our daily forex analysis and predictions? Here are the best Silver trading brokers to choose from.

Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

As seen on: Pairs Of Aces Podcast,The Trader Guy, FXEmpire



Source link

25 05, 2026

GBP/USD Forecast Today 25/05: Stays Rangebound (Video&Chart)

By |2026-05-25T15:10:26+03:00May 25, 2026|Forex News, News|0 Comments

  • The British pound initially rallied during the trading session on Friday but gave back gains as we tested the 50-day EMA.

  • Ultimately, this is a market that I think is going to continue to be very noisy, but if we can break above that 50-day EMA, it is possible that we could go looking to the 1.35 level.

  • The 1.35 level is an area that will remain a bit of a psychological barrier, I think.

We will see whether or not we are going to give you an opportunity here to break out above there and start shorting the dollar. The interest rate differential is, of course, going to be in favor of the British pound—not by a lot, but enough that it keeps the British pound a little bit more resilient against the dollar than many other currencies. If we fall from here, the 200-day EMA is going to offer support underneath. Breaking that opens up a drop down to the 1.33 level.

Market Volatility and Trading Strategy

All things being equal, this is a market that I think will remain very noisy and very volatile. The British pound is a currency that is kind of similar to the dollar in the sense that the central bank may have to stay tighter for longer, and because of that, I expect to see a lot of compression, a lot of sideways action.

In fact, if you are a short-term day trader, this is probably your currency market. Otherwise, you are going to be hard-pressed to find a reason to get overly aggressive. At least not until we get out of this 200-pip range, which, by the way, we are right at the middle. So, this is no man’s land.

Ready to trade our daily GBP/USD Forex forecast? Here’s some of the best forex broker UK reviews to check out.

Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

As seen on: Pairs Of Aces Podcast,The Trader Guy, FXEmpire

Source link

25 05, 2026

Crude Oil Forecast Today 25/05: Below $100 (Video&Chart)

By |2026-05-25T15:00:42+03:00May 25, 2026|Forex News, News|0 Comments


  • The light sweet crude oil market has gone back and forth to show signs of hesitation, but at this point in time, we are sitting just below the $100 level.

  • We did bounce from the 50-day EMA and that does matter.

I think ultimately you have got a situation where if we can break above the $100 level, then $105 could be very real. Breaking below the 50-day EMA opens up a drop to the 50% Fibonacci retracement level of the bigger move going back several months, possibly even opening up a drop down to the 61.8% Fibonacci retracement level near the $86 level. The $105 level has proven to be very difficult, and if we can break above there, the $110 level is, in fact, where we go longer term.

Market Dynamics and Outlook

All things being equal, I expect a lot of choppy behavior out of oil because, quite frankly, we have got a bunch of people in the news throwing headlines around to move the markets and not really anything fundamentally driven other than the fact that there is going to be a shortage, no matter what people think or want.

A move above the $110 level opens up the possibility of a move to the $120 level before it is all said and done, but I do not see that happening yet. All things being equal, I do think that we are trying to find some type of summer range from which to trade in, and with that, I look at this as a market that, quite frankly, if we get an opportunity to buy the dip, you probably want to.

I just would not look for huge gains. I think finding a little bit of value in oil makes a certain amount of sense this time of year, but again, remember, this could be moved by the latest tweet or press conference, you just do not know.

Ready to trade daily crude oil price analysis? We’ve shortlisted the best Forex Oil trading brokers in the industry for you.

Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

As seen on: Pairs Of Aces Podcast,The Trader Guy, FXEmpire



Source link

25 05, 2026

EUR/USD Forecast: Trades near 1.1650; above 23.6% Fibo.

By |2026-05-25T11:08:48+03:00May 25, 2026|Forex News, News|0 Comments

The EUR/USD pair opens with a bullish gap at the start of a new week as renewed optimism over a potential US-Iran peace deal weighs heavily on the safe-haven US Dollar (USD). Spot prices climb back closer to mid-1.1600s during the Asian session, though the broader setup warrants some caution before positioning for an extension of a modest recovery from the lowest level since April 7, around the 1.1575 region, touched last Thursday.

From a technical perspective, the EUR/USD pair is holding above the 23.6% Fibonacci retracement of the April-May downfall. Adding to this, the Relative Strength Index (RSI) is around 58 and a slightly positive Moving Average Convergence Divergence (MACD) reading hints at improving momentum. This, in turn, backs the case for a further intraday appreciating move, though hawkish US Federal Reserve (Fed) bets could limit USD losses and cap spot prices.

Hence, any subsequent move up is more likely to confront an immediate hurdle near the 38.2% Fibo. level, around the 1.1675-1.1680 region. This is followed by the 1.1710 confluence, comprising the 200-period Simple Moving Average (SMA) on the 4-hour chart and the 50% retracement. The said area should keep the near-term bias capped, above which the EUR/USD pair could target the 61.8% level around 1.1740 and the 78.6% retracement at 1.1785 en route to the cycle high at 1.1842.

On the downside, immediate support is located at the 23.6% retracement at 1.1638, with a deeper floor at the Fibonacci structural anchor around 1.1574, where a break would reopen the broader bearish phase.

(The technical analysis of this story was written with the help of an AI tool.)

EUR/USD 4-hour chart

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Canadian Dollar.

USD EUR GBP JPY CAD AUD NZD CHF
USD -0.32% -0.37% -0.25% -0.16% -0.57% -0.46% -0.35%
EUR 0.32% -0.06% 0.07% 0.14% -0.26% -0.15% -0.03%
GBP 0.37% 0.06% 0.13% 0.20% -0.21% -0.08% 0.02%
JPY 0.25% -0.07% -0.13% 0.08% -0.36% -0.26% -0.15%
CAD 0.16% -0.14% -0.20% -0.08% -0.42% -0.32% -0.21%
AUD 0.57% 0.26% 0.21% 0.36% 0.42% 0.11% 0.22%
NZD 0.46% 0.15% 0.08% 0.26% 0.32% -0.11% 0.10%
CHF 0.35% 0.03% -0.02% 0.15% 0.21% -0.22% -0.10%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

Source link

25 05, 2026

Coffee prices on May 25th: Turn around and slightly decrease

By |2026-05-25T10:59:59+03:00May 25, 2026|Forex News, News|0 Comments


Domestic coffee prices today

Opening the first trading session of the new week on May 25, 2026, the domestic coffee market did not maintain the excitement of the previous weekend. According to survey data, the purchase price of soybean kernels has simultaneously cooled down, losing from 300 to 400 VND/kg.

Dak Nong (old): Reduced by 400 VND, retreating to 87,700 VND/kg, but still continues to lead in purchasing prices throughout the region.

Dak Lak: Reduced by 400 VND, currently trading at the threshold of 87,600 VND/kg.

Gia Lai: Recorded a slight decrease of 300 VND, listed at the same level as Dak Lak at 87,600 VND/kg.

Lam Dong: Reduced by 400 VND, pushing the purchase price down to the lowest level in the region at 87,000 VND/kg.

Notably, pepper today also recorded a decrease of 1,000 VND, falling to the level of 141,000 VND/kg. Conversely, the USD/VND exchange rate at Vietcombank slightly increased by 2 VND, currently listed at 26,132 VND/USD.

World coffee prices

Due to time zone differences, as of noon today (Vietnam time), both ICE London and New York futures exchanges have not yet entered the official order matching session of Monday. Electronic boards are currently temporarily frozen, maintaining the opposite closing level of last Friday:

London Stock Exchange (Robusta): July futures (RMN26) anchored at a high of $3,456/ton (maintaining the breakthrough +57 USD from the end of the week).

New York Stock Exchange (Arabica): July futures (KCN26) sideways at 272.35 cents/lb (currently in the lowest price range in 1.5 years).

Coffee market outlook

The coffee market is currently caught between two opposing macroeconomic information flows, creating a fierce tug-of-war in investor sentiment:

The current high price of Robusta is greatly supported by the drought in Vietnam. According to the weather forecasting agency, rainfall in the Central Highlands in the past time is still very scattered and scarce, directly threatening the development of young coffee fruit trees. Severe drought has caused ponds and lakes in Gia Lai and many Central Highlands regions to dry up to the bottom, thousands of hectares of coffee and pepper fell into a state of thirst.

In addition, the “Super El Niño” specter (with a 67% probability of occurring according to NOAA) is raising concerns that the rainy season in Brazil will be delayed to September and October, with the risk of devastating the 2026/27 crop. Arabica inventories hitting a 3-month low (449,567 bags) is also a safe buffer zone to prevent prices from falling freely.

Although the weather is very risky, the actual crop season of Brazil is being assessed as extremely good. “Big players” such as Marex and StoneX continuously emphasize the production figure of 75.3 – 75.9 million bags, pushing the global surplus in 2026 to a record level of 10 million bags. At the same time, Vietnam’s export data increased sharply by 15.8% (reaching 810,000 tons in the first 4 months of the year) along with the fact that Robusta inventories on the London exchange have just recovered to a 6-week high (3,968 lots) are burdens hindering price increases.

The slight downward correction at the beginning of the week in the domestic market shows the caution of traders ahead of the new South American crop line pouring into the market.





Source link

25 05, 2026

EUR/JPY Price Forecast: Tests 185.00 barrier near descending channel top

By |2026-05-25T07:07:55+03:00May 25, 2026|Forex News, News|0 Comments

EUR/JPY extends its gains for the second successive day, trading around 184.90 during the Asian hours on Monday. The pair is holding a mild bullish bias as it consolidates above both the nine-day and 50-day Exponential Moving Averages (EMAs), which cluster just below price around the mid-184s and reinforce a nearby demand zone.

Moreover, the 14-day Relative Strength Index (RSI) sits close to the 50 line, hinting at neutral but stabilizing momentum that could allow the cross to extend gains while it remains supported by these short- and medium-term trend gauges.

However, the technical analysis of the daily chart indicates the EUR/JPY cross is still moving sideways within a descending channel pattern, indicating an ongoing bearish bias. A sustained break above the channel would offer a bearish confirmation.

The immediate resistance lies at the upper boundary of the channel around 185.10. Further advances would support the EUR/JPY cross to explore the region around the all-time high of 187.95, which was recorded on April 17.

The immediate support lies at the 50-day EMA of 184.85, followed by the nine-day EMA at 184.79. A break below these moving averages would put downward pressure on the EUR/JPY cross to navigate the region around the three-month low of 181.87, recorded on March 16, followed by a five-month low of 180.81, which was reached on February 12.

EUR/JPY: Daily Chart

(The technical analysis of this story was written with the help of an AI tool.)

Euro Price Today

The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the US Dollar.

USD EUR GBP JPY CAD AUD NZD CHF
USD -0.35% -0.40% -0.27% -0.17% -0.59% -0.51% -0.36%
EUR 0.35% -0.06% 0.07% 0.16% -0.27% -0.17% -0.03%
GBP 0.40% 0.06% 0.15% 0.22% -0.20% -0.11% 0.02%
JPY 0.27% -0.07% -0.15% 0.09% -0.37% -0.29% -0.16%
CAD 0.17% -0.16% -0.22% -0.09% -0.43% -0.35% -0.23%
AUD 0.59% 0.27% 0.20% 0.37% 0.43% 0.08% 0.21%
NZD 0.51% 0.17% 0.11% 0.29% 0.35% -0.08% 0.12%
CHF 0.36% 0.03% -0.02% 0.16% 0.23% -0.21% -0.12%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).

Source link

25 05, 2026

Gold Price Forecast: XAU/USD keeps looking for direction above $4,500

By |2026-05-25T06:58:45+03:00May 25, 2026|Forex News, News|0 Comments


Gold (XAU/USD) trades lower for the second consecutive day on Friday, but remains contained within previous ranges, with downside attempts limited above the $4,500 line for now. Market volatility remains subdued on Friday, with traders awaiting developments from the US-Iran war to make investment decisions.

The confusing situation in the Middle East is providing moderate support to the safe-haven US Dollar, keeping the US Dollar Index (DXY) steady near six-week highs and Gold bulls in check.

The latest news reports that Tehran is reviewing a peace proposal submitted by the US, with both parties far apart on Iran’s nuclear activities and control of the Strait of Hormuz. US Secretary of State Marco Rubio, however, said on Thursday that there was  “some progress” in the talks with Tehran, which is feeding a moderate optimism

Technical Analysis: Gold is nearing the tip of a triangle pattern

XAU/USD trades at $4,522, holding a capped tone, with price action nearing the tip of a small triangle pattern. The Relative Strength Index (RSI) hovers around 45, hinting at consolidative, yet slightly negative momentum, while the Moving Average Convergence Divergence (MACD) stays in positive territory but has started to ease, suggesting that recent upside attempts are losing traction

Triangles are considered continuation patterns; thus, in this case, a bearish outcome is favoured. The base of the triangle is now at $4,500, but the key support area is the May 20 low near $4,450. A break of this level exposes late March lows at $4,350 and $4,306.

A confirmation above $4,580 (May 18 highs), on the other hand, would negate the bearish view and shift to the May 11 and 12 lows around the $4,650 ahead of May’s top in the $4,770 area.

(The technical analysis of this story was written with the help of an AI tool.)

Gold FAQs

Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.

Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.

Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.

The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.



Source link

Go to Top