The future of gold prices, according to the head of Shiraz Chamber of Commerce / Gold prices will fall?

Razzaqi said: "In fact, financial uncertainty, falling interest rates and weakening global economic growth will affect the future of gold prices this year.

He added: "One of the main reasons for the drop in the price of gold is the US President's announcement that quarantine will not be implemented in the second wave of the Corona virus outbreak."

"Tensions between the United States and China were expected to increase the price of safe-haven assets, but the elimination of quarantine in most countries and the reopening of businesses continued to decline," said Jalal Razzaqi.
"Accordingly, the existence of two opposing forces, namely the resumption of economic activity and tensions in US-China trade relations, has made it difficult to predict the price of gold for the coming days," he said.

You can read Jamal Razaghi's note about the market situation (here)

The future of gold prices, according to the head of the Shiraz Chamber of Commerce / Gold prices will fall?

 

Markets have recovered slightly with the reopening of businesses and the elimination of quarantine in many countries, as well as new hopes for the discovery of the coronavirus .

1. However, the existence of fluctuations in each of these markets indicates instability and uncertainty about future economic conditions; Because it is impossible to accurately predict the outbreak of the second wave of the Corona virus and the closure of businesses. Even if there is no resurgence, trade tensions between China and the United States, the world's two largest economies, will destabilize markets. Domestic markets are also interdependent, and changes in the stock market also affect the currency and coin markets. Of course, the decrease in foreign exchange earnings will also affect other markets and assets, and it is not possible to provide an accurate forecast of the short-term future of the country's economy .
3. The dollar fell 2.7 percent last week. Meanwhile, in the week leading up to the 2nd of Khordad, the dollar reached 17830 tomans, but with each increase, it has returned to the lower channel. One of the reasons that prevented the rising trend of the dollar exchange rate above 17800 Tomans is the increase in the supply of currency by market regulators and the growth of prices in selected exchange offices. The steady decline of remittances scrambled down prices, depreciation of the dollar in the neighboring countries as well as growth of 12 thousand units is a stock index. In addition, the dollar exchange rate in the Nima system has increased due to increased demand for imported currency. This issue, along with strengthening the supply of foreign exchange, has led to a decrease in the entry of false demand into the market .
5. The coin, as usual, followed the dollar, declining steadily and fell 2.9 percent last week . In addition, the global price of gold during this period, until Wednesday, has recorded a decrease of 1.9 percent. If the overall stock index falls, there will likely be an increase in the dollar and coin exchange rates. At the present time, the overall stock market index has grown and this increase has had a negative impact on parallel markets .
7. The decline in world gold prices, which began on May 21 , continued last week until May 27 . One of the main reasons for the drop in the price of gold is the US President's announcement that quarantine will not be implemented in the second wave of the Corona virus outbreak. Tensions between the United States and China were expected to increase the price of safe-haven assets, but the elimination of quarantine in most countries and the reopening of businesses continued to decline. Thus, the existence of two opposing forces, namely the resumption of economic activity and tensions in US-China trade relations, has made it difficult to predict the price of gold for the coming days. In fact, financial uncertainty, falling interest rates and weakening global economic growth will affect the future of gold prices this year . 
9. The stock index has continued its decline since Tuesday , May 20 , in the last seven days leading to Tuesday , June 26 , has decreased by 9 percent. The index rose 1.3 percent on Wednesday alone. Slowing the flow of liquidity to the stock market and the expiration of the registration deadline for negotiable banking and insurance funds and announcing the registration for the sale of justice shares can reduce the value of the stock index. The central bank's targeted inflation rate, at a rate lower than expected by shareholders, increased the likelihood of a price bubble and led to a 3.5 percent correction in the overall index, which is unprecedented since last January. On Wednesday, after a few days drop in the index, growth of 1.3A percentage was recorded. Due to the bubble atmosphere of the market, there is a possibility that the stock index will fall in the coming days .
11. Oil prices have fluctuated slightly over the past week, with Brent, US crude and OPEC growing 0.8 percent , -2 percent and 11.5 percent , respectively, last week . Brent and US crude fell 3.5 percent and 4.5 percent, respectively, on Wednesday , raising tensions between the United States and China and worries about how demand will improve after The prevalence of the coronavirus is. There are also doubts about Russia's adherence to the OPEC agreement to reduce oil production .
13. * Chairman of Shiraz Chamber of Commerce