Will gold close the week negative?

Tightening policies of central banks have worried gold investors. This situation seems to cause gold to close the week in a negative direction.

Spot gold reached the level of $1,840 in the morning hours on the last day of the week. Although rising interest rates reduce the attractiveness of non-interest-bearing gold, economic fluctuations cannot prevent gold from being seen as a safe haven, therefore it does not completely lose its support. The collapse in global stocks and bonds caused the Fed to raise 75 basis points for the first time since 1994. The Bank of Japan, on the other hand, continued to keep interest rates at the lowest level by resisting the tightening wave of global central banks and the pressure exerted by the market on yen and bonds. Yesterday, the Swiss Central Bank made a surprise rate hike after 15 years, while the Bank of England raised interest rates to the highest level since 2009, and also warned of further increases. “As central banks tighten monetary policies around the world, global bond yields may rise, reducing interest in the precious metal,” said Avtar Sandu, Senior Director of Commodities, Phillip Nova. "Those who advocate a bull market in gold seem to have lost an important ally, the pigeon central bankers, and their loose monetary policy."

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