Buy gold this month?

Last month, in June, the gold price dropped from $1,916 to $1,761. Currently, gold remains under pressure due to the U.S. Federal Reserve and the possibility of an unexpected interest rate hike.
 
Typically, private investors purchase gold as a hedge against inflation. However, another factor is currently in play: the focus on the dollar. The interest rate increase had a positive effect on the U.S. dollar. Consequently, the primary driver behind the drop in the gold price is the appreciation of the dollar.
 
Economies worldwide are recovering, but risks and uncertainties remain. One example is the emergence of the new British variant of the coronavirus. This variant highlights that the fight against the virus is not yet over. If the situation worsens again, this will likely impact the gold price as well. In times of uncertainty, many private investors turn to gold as a safe haven and protection. This could lead to an increase in the gold price, driven by the basic principles of supply and demand.
 
Over the past month, gold has weakened slightly. However, this decline may not yet have run its course. The key resistance level is around $1,850. If the price exceeds this level, it could be a signal to trade in gold. For the month of July, there is no clear trend yet. Nonetheless, it is evident that demand for gold could rise due to increasing inflation and the uncertainty brought on by the new coronavirus variant. At The Silver Mountain, you can buy gold at a competitive price. The gold is of excellent quality and can help protect you against potential inflation and uncertainty.
 
Disclaimer: The Silver Mountain does not provide investment advice, and this article should not be regarded as such. Past performance is no guarantee of future results.