The gold market continues to see lackluster demand even as the price holds support above $1,800 an ounce. However, one market strategist said that sentiment could start to shift to the bullish side once again before the end of the month.
In an interview with Kitco News, Robert Minter, director of investment strategy at Aberdeen Standard Investments, said that it will soon be clear that the ongoing COVID-19 pandemic and the growing threat of the Delta Variant will continue to weigh on the U.S. labor market, which is a critical element to the Federal Reserve’s plan to reduce its monthly bond purchases.
He added that any delay in the Fed’s much-anticipated plan will be positive for gold prices. He said that another component of the labor market is if workers are still unemployed, the U.S. government could be forced to launch a new stimulus package…read more.