Gold price is likely to witness a jump in the coming weeks due to the weakening of the US dollar in the market. Since the last year, the demand for gold among investors has been increasing in order to preserve capital to face the challenging global economic situation. This year, gold metal has seen a gradual increase despite the rising value of a dollar in the market. And the accommodative Fed policy will contribute significantly to increase the value of Gold’s currency in the next coming weeks.
The value of gold depends a lot on many geopolitical factors including the U.S.-China trade war. After the news of the agreement between the US and China to end their trade war, many gold bulls looked in a panic over the metal’s value in the coming term. Although gold has lost some of its safety bid since the last couple of months, it is being compensated due to the strengthening of its currency component.
The US dollar index has witnessed a decline since the beginning of this October and it has a positive impact on the Gold currency. People get the latest updates from various online sources depicting the value of different digital currencies in the market. On Kinesis, the information related to stable coins and digital currencies is provided for trade purposes which people use to know about the latest updates in the financial market.
The U.S. Federal Reserve’s announcement to loosen monetary policy will help to favor strengthening the gold value in the coming weeks. The decision of the central bank to lower its benchmark interest rate will also reduce the competition for gold in the market.