SMM News: the gold market continues to fluctuate, the spot gold price fluctuates around 1800 US dollars / oz, and the whole market continues to be bullish on gold prices.
Lukman Otunuga, senior market analyst at FXTM, pointed out that there is still plenty of room to rise in the second half of the year after a big rise in the first half of the year
"the sharp rise in the gold market is the result of a macro push."
The epidemic in the United States is still very serious, and the pressure on its economy is difficult to get rid of in a short period of time, coupled with persistently low interest rates, there are many factors supporting gold.
Otunuga pointed out that the key factor driving gold prices higher in the second half of this year will be the massive stimulus program in the United States.
"this is a means of countering the impact of the epidemic, but in the end it will have very big consequences. The US budget deficit will increase significantly, which will be a key risk affecting market sentiment, especially in the fourth quarter of this year."
The differences between US stocks, which are still high, and the fundamentals of the US economy are clearly huge.
The driving force behind the rally in US stocks is the huge amount of liquidity that the Fed has injected into the market. Under such loose monetary policy and huge fiscal stimulus, the stock market has received a huge boost. "
But Otunuga points out that U. S. stocks behave like a child who eats too much sugar and gets overexcited. But the excitement will eventually disappear, and then there will be a big correction for U. S. stocks.
"overall, gold is clearly supported by a number of positive factors. Whether it is the weakness of the dollar, political uncertainty, the pressure on the global economy and the risks of the market as a whole. "
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