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 analyst this level needs to be sustained or the precious metal could be in for further losses.
A resurgent US dollar has been a major factor in golds recent run of Bad luck and even a dovish US Federal Reserve, which has taken any further chances of a rate hike this year off the table has failed to curb investors’ appetite for the greenback
“The $1,280 level has to hold, and $1,280 could be $1,270, $1,285, somewhere in that area. That’s got to hold for a couple of days and do a little consolidating here. If that doesn’t hold, then we’re bringing $1,260 and $1,240 into play, but if we can hold here, then I would be willing to call this a bottom and I think we can go higher from here,” said Todd “Bubba” Horwitz, chief strategist at bubbatrading.com.
Mr Horwitz still thinks that gold will push higher on the back of a round of equity selling and global uncertainty such as the Brexit Drama that’s playing out in Europe and the ongoing trade wars between China and the US in which a deal still hasn’t been reached.
"I think that we have a very solid chance to get to $1,400. I think there's going to be some selling coming into the equities, I think there's going to be some nerves out there, and I think people are going to go back into the yellow metal," he said.