Finding support from the economic concerns created by the delta variant, gold, which started to cover $ 1,800 this week, once again declined to the fluctuation created by the Fed towards the end of the week. The minutes of the Fed's July 27-28 meeting created an expectation that asset purchases would be reduced before the end of the year, which brought sales to gold. Experts, who say that the Fed-gold stubbornness continues, think that gold has an upward maneuvering area in the medium-long term.
Spot gold in international markets retreated towards the support level of $ 1,770 with the effect of the strengthening US dollar. The upward move below once again loses momentum under Fed pressure, with analysts saying the $1,750 region could be viewed as the next support. Gold price fluctuates significantly in an environment where Fed members continue their discussion about reducing the asset purchase program. How the discussions of the Fed members will continue and when the Fed will act is the main agenda of the market participants, but the precious metal is trying to fight this pressure. Despite the recent declines, the medium and long-term positive continues, according to some analysts. According to analysts, who said, "There is an ounce of stubborn gold investors," despite the Fed pressure, gold still has room to maneuver.
If he fights well in 1,812, he could rally 1,878
After falling below $1,700 an ounce with stronger-than-expected US employment data, it started to cover up with $1,800 again this week. This week, gold has exceeded $1,785 an ounce, testing the downward trend that has been going on for the past year. Stating that the 1.790-1.800 region is an important resistance in terms of the 50 percent correction level of the rise between April-June, analysts say that breaking this area will be a positive signal. After that, the 1.806-1812 region is the first significant resistance that gold will have to struggle to move up. It is reminded that the 10 resistor is important. If it surpasses this test, the yellow metal will attempt to try above the July high of $1,834. As his next targets, it can be expected to try to reach $1,856, which he saw in June, and $1,878, where the downward line of 2020-2021 crosses. According to Commerzbank analysts, who stated that gold has formed a strong support at the June 2020 low of $ 1,670 in the downward movements of gold, although it is very unlikely, a downside break of this level may cause a pullback below $ 1,600.
Brazil's gold reserves increased by 100%
The Central Bank of Brazil bought more than 62 tons of gold in the three months to July 2021, increasing the country's reserves to about 130 tons. While the increase in the physical assets of the bank was 92.4 percent, the monetary size of the assets increased almost 100 percent in the last year. While the bank made a large purchase of 41.8 tons in June, it purchased 11.9 and 8.5 tons of gold in May and July, respectively. The share of gold in Brazil's gold and foreign exchange reserves, which reached $355.7 billion as of the end of July, increased from 1.2 percent last year to 2.1 percent.
With the effect of the increase in gold prices during the pandemic period, the value of Brazil's gold assets reached $ 7.57 billion. Since the Central Bank has hardly changed the amount of reserves invested in the precious metal since November 2012, this move was recorded as the first major purchase in the last 10 years. In the first six months of this year, it became the world's third-largest gold buyer after Thailand and Hungary.
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