Gold ready to rally again

23 June, 2017

The gold price is moving higher again today for the second day in a row as doubts linger on the Future of rate hikes from the US Federal Reserve.

Analysts predict that the gold price will be driven in the nearest future by the Fed as they attempt to lift interest rates which is negative for gold as the US dollar becomes attractive as a high yielding investment.

How many more rate rises there will be is anybody’s guess and the economic data released over the next month or so will be closely monitored by the market to see if it warrants a rate hike,

“Investors are waiting for any clues on whether the timing of the next rate hike is September or December. The economic data coming out of US over the next two months will be crucial,” noted Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong

“The easing in dollar prices, especially its weakness against the yen is supporting gold” he added.

From a technical point of view gold is also looking attractive and if it manages to break through a critical key level further gains are expected,

"Medium- to long-term we still believe it is only a matter of time before the downtrend from 2011 is proper broken. A confirmation of that would be a break above $1,296, which currently act as a double top. We maintain our end of year forecast of $1,325 with the price risk being skewed to the upside," he added.

Dr Marie Owens Thomsen, global head of Economic Research for Indosuez Wealth Management

"We believe that a small percentage of almost anybody's portfolio would do well to be invested in gold. However, we are not thinking that it will be the best-performing asset necessarily. We like to say that investors should own some gold not to become rich but to remain wealthy," she added.


Source link  
Oil awaits Fed decision

The Oil price was trading lower again yesterday on Monday, weighed down by worries about the current state of economic growth, and some major...

Oil surges on conflict concerns

The oil price has continued to rise in today’s trading session after yesterday’s gains on the back of attacks on two oil tankers in the Gulf of Oman...

Gold need to hold this level

The gold price is now trading at its lowest level since the start of the year and is now consolidating around the $1275 mark and according to one...


Gold faces key moment

The gold price has remained above the $1300 mark in today's trading session after breaking this important level yesterday and today's outcome...

US dollar down on dovish Fed

As predicted yesterday, the Fed kept interest rates on hold but the following monetary statement was much more dovish than analysts had predicted...

Gold needs some big news

The gold price is under further pressure in today's trading session as investors ponder the chances of another rate hike from the US Federal Reserve after the release...


Good news for the precious metal

Gold just got another reason to cheer after the latst minutes meeting from the US Federal reserve where the tone left many analysts predicting that...

Gold to stay above $1300

The gold price has recovered strongly over the past 3 trading sessions after coming perilously close to touching the $1300 mark and...

Oil price hinges on trade talks

Oil is down once again in today's trading session as investors and the market alike remain divided on the future direction of the price with a lot...

  


Share it on:   or