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  
Oil to remain flat

The oil price is set to remain stagnant over the next few years according to some analysts with the outside possibility that the price could tumble if Opec members fail to cooperate...

Mini gold rally won't last

After hitting a low of $1,260 3 days ago, the gold price has rallied nearly $30 to be trading around $1,289 today and some are predicting...

Gold may struggle to rebound

The gold price is under further pressure today as investors exit the safe haven commodity in favour of the US dollar after yesterday’s positive...


Euro looks technically vulnerable

The Euro has come under pressure in recent days and now it seems its becoming technically vulnerable on the back of a head and shoulders...

Pound looks to $1.3500

British pound continues to surge today against its US counterpart, following on from yesterday’s gains on the back of booming inflation...

Gold may go much higher

Gold is powering ahead following on from gains of more than $20 yesterday after a missile test from North Korea greatly increased the chances...


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....

  


Share: