Hua Seng HengPrivate± Mixed
relevance
Hua Seng Heng advises investors to monitor three key factors that will set the direction for gold prices this week: the Iran-US negotiations, the auction of US 2-year bonds, and the FOMC meeting on 29–30 July. Gold prices rose last week on signals that the two countries were opening channels for talks. Meanwhile, CME Group's Fed Watch Tool expects the Fed to hold rates at this meeting. As for the 2-year bond auction on 27 July, Hua Seng Heng's analysis suggests that if the government still has to pay higher interest or demand weakens, it could pressure gold prices. For the FOMC meeting, the market expects the Fed to keep rates at 3.50–3.75%, but attention must be paid to the Fed chair's remarks on the inflation outlook and the labour market. Hua Seng Heng sees support for global gold at 3,940 and 3,840 dollars, and resistance at 4,105 and 4,160 dollars, while recommending gradually accumulating domestic gold bars when prices soften to near 63,150 baht.