Gold price continues to rise

The price of gold remains under pressure. Over the past week, the LME industrial metals index declined by 4% and is now at its lowest level in a month. Capital outflows from , continue - investors prefer to keep funds in debt securities and stocks.

What should happen at the moment for the gold quotations to get an impulse for growth and for the price to transfer to an ascending tendency? Yaroslav Kabakov, Director of Strategy at FINAM Investment Company, answered Fortrader's question.

- managed to rise to $1800 after a significant decline amid strong US labor market statistics. The main growth driver is the weakening of the dollar and the expectation that the increase in COVID-19 infections may postpone the planned reduction of the Fed asset purchases in the near future.

Undoubtedly, the inflation factor plays on the side of rising gold prices, but it is opposed by the possible tightening of monetary policy of the leading central banks, and while this shaky balance is not broken, the quotations of the metal will remain at these levels.

However, in the medium term, this asset will clearly trade at current levels, at best, until the next round of monetary policy easing.