Gold to remain supported

17 April, 2017

Gold to remain supported

The gold price has levelled off today after rising for the pass 5 trading sessions and leaving analysts divided on the future direction of the precious metal.

At 4.20pm (GMT) gold was trading at $1,283 , slightly down from $1,286 in yesterday’s trading.

As the US gears up to confront North Korea over its nuclear weapons program by sending warships towards the area, the chance for gold to make further gains is a real possibility, as the yields on Treasuries decrease and investors seek out higher returning assets

As a flight to safety into U.S. Treasuries comes in and yields continue to compress, gold becomes a lot more attractive, noted Boris Schlossberg, managing director of foreign exchange strategy at BK Asset Management

"I do think with the Trump administration and with the militarization that's going on right now, the risk is very high, so gold does have the chance to go further." He added.

Another factor supporting the gold price at the moment is recent comments Trump that the level of the US dollar was too high causing investors to exit the greenback and move their money into other assets,

“Gold had been trading higher based upon geopolitical tensions,” including those between the U.S. and Russia and North Korea, but “what gold really needed to keep its rally going was some sort of a fundamental monetary driver,” said Brien Lundin, editor of Gold Newsletter

“Trump graciously provided that with his comments calling for a weaker dollar and continued low-interest-rate policies. Over the longer term, the path higher for gold has been somewhat cleared by Trump’s acknowledgment of the dovish monetary policies they will pursue, and the metal seems likely to build upon its gains in the weeks ahead.” Mr Lundin added.


Source link  
Pound may be at a bottom

British pound has drifted lower midway through the European session, brushing off better than expected retail sales figures but some predict...

Possible conflict boosts gold

The gold price is on the rise today after comments by US president Donald `Trump about North Korea which increased the chances of a military conflict...

Pound may be sold off

The British Pound is trading higher for a 6th straight session today as the market awaits the latest interest rate decision from the Bank of England followed by a monitory press conference....


Gold looking good technically

The gold price has racked up its fourth straight day of gain in early European trading today after Yesterday’s speech by Fed president Janet Yellen...

Pound ready to run

The physiological mood may be changing with the British pound as we can see on the chart as the retractions become smaller and the movements up become bigger...

Australian dollar may reverse trend

The Australian dollar has taken a tumble in today’s trading session after a less than enthusiastic speech from the RBA had investors...


Australian dollar may move higher

The Australian dollar has made a strong recovery in the last...

Pound to tumble on election results

The British pound is under pressure again today against the Euro as more polls released before election day show the opposition...

Huge chance for gold

The Elections in the UK next week could be shaping up as a real boom for the Gold price as the gap narrows between Prime minister Theresa May...

  


Share: