Gold down on profit taking

31 August, 2017

Gold down on profit taking

Gold has pulled back in the last 3 days on the back of profit taking but by no means is the rally over with so much uncertainty around us at the moment.

At the start of the year we had a hyped up American president who promised to push through dramatic changes which have not eventuated due to some members of the US congress.

 This should remind us that there are checks and balances in the government and President Trump doesn’t have a free hand to do what he wants.

Gold was also being held back by expectations that the Fed would hike rates 4 times this year which has only turned into one, with no more expected this year.

Inflation has been a constant problem for the US central bank and according to some will also keep their hands tied as we move into next year,

“Given the fact that inflation should remain relatively low, we do not expect the Fed to be capable of doing much more than one hike in 2018,” said Luc Luyet, a currency strategist at Pictet Wealth Management

“The dollar should be penalized next year by the weaker growth outlook and by the less active Fed, so we would expect the dollar to gradually weaken and that should support gold.” He added.

Technically gold is also looking strong which is obvious by the higher top it made in the beginning of June which is followed by the recent high it made last week.

The most recent double top is going to provide a strong resistance base and should provide the point on which gold continues its uptrend


Source link  
Stagflation a threat to US dollar

The US dollar jumped suddenly after yesterday’s release of better than expected inflation data and then suddenly reversed into negative territory which...

Gold made a run for the $1365 mark

If we look at the arrow on the weekly gold price chart we can see that a resistance point that was first encountered in around august of last year...

Gold awaits direction of Stockmarket

The gold price has remained in a tight range over the last 3 trading sessions as equity markets in the US continue to swing wildly and are now down...


US dollar in for a tough year

The US dollar finished off 2017 mostly weaker against the major currencies despite 3 rate hikes from the US Federal Reserve and although...

RBA misleads investors on AUD

The Australian dollar has dropped sharply in today's Asian trading session on the back of disappointing data and throws into question yesterday...

Brexit doubts pressure pound

The British pound has enjoyed a good run against its US counterpart ever since rumors spread that the EU and the UK were close to reaching a deal...


Gold steady ahead of key news

The gold price is trading slightly higher today as the market awaits the senate testimony later today from Jeremy Powell who is Donald...

Gold looks to go past $1300

The gold price remains well supported today after yesterday’s stellar gains on the back of a less than convincing speech from The US Federal Reserve...

Gold remains supported

After falling sharply on Monday, the gold price has stabilized over the last 2 days and it looks as if for now, the precious metal has found strong...

  


Share: