Gold is not interesting now, but it can shine further


ounce of gold on Wednesday, March 24, is trading at $1,731.60 and is rising very slowly because the dollar is strong and confident. The short-term trading range of precious metals remains in the range of $1,710-$1,750 per Trojan ounce, which is quite logical. Gold is not of interest to investors as a protective asset even during periods of global sell-off, as there is a stable dollar and some policy to stimulate the US economy.

This policy is stimulating in the future and may be a factor in the growth of gold. Fears of a dampening of inflation in the United States and a global fiscal stimulus that requires the addition of money could expose the dollar to some stress. The White House administration has already launched a $1.9 trillion stimulus package, followed by another $3 trillion. In the US, there are no problems with money – as much as it takes, so much will be spent. But an increase in the money supply will accelerate the consumer price index and cause a drop in bucks. Theoretically, this is able to provide gold with solid support and send it in the long run up to $2,000.  

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