Gold may go much higher

30 August, 2017

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

North Korea's latest missile test which flew directly over Japan  sent the Japanese people running for cover and landed in the water less than 800 miles from the coast

"North Korea's missiles over the Japanese Hokkaido islands obviously fueled buying for the flight for safety kind of money including the Japanese yen and gold," said Yuichi Ikemizu, Tokyo branch manager at ICBC Standard Bank.

This event follows on from last Fridays dovish speeches at Jackson hole Wyoming from US Federal Reserve President Janet Yellen and ECB President Mario Draghi which was also a driver of the gold price,

Jeffrey Halley, senior market analyst at currency trading platform Oanda, said in a note that gold should push higher from here which may be at the expense of the US dollar

"The events of this morning have somewhat overshadowed gold's performance in the New York session where gold proceeded directly to go and put in a monster $20 rally from its opening," he said. "Trump's negative comments on the NAFTA renegotiation and no tightening signals from Jackson Hole see U.S. dollar selling renew with vigor in New York." He said.

US President Donald Trump has yet to weigh into the North Korean Saga but it is expected it is only a matter of time before he does and depending on the tone of his voice, investors are likely to keep heading for gold.


Source link  
Pound may be headed for parity

The market had been expecting such a move so all eyes were on the following monetary statement for signs of the US central bank's future moves...

Fewer rate hikes may support gold

The Gold price has continued to rally today after yesterday's release of consumer price index figures from the US threw into doubt the ability for the US...

More rate hikes may boost pound

The British pound has been well supported over the last few days as speculation that a rebellion within against Prime Minister May's conservative party...


Oil rises on lower US reserves

The oil prices is trading higher in today's trading session, following on from yesterday solid gains after a fall in US crude oil inventories and the...

US dollar rally about to end?

The US dollar has certainly been the success story of this year gaining strongly against all assets classes including gold with global tensions and higher...

US dollar will overcome Trump

After rallying for most of the year against the major currencies the US dollar seems to have stalled over the last week and according to some...


Pound may hit post Brexit levels

The British pound has now had its worse run since the global financial crisis and according to some analysts the pain may be far from over...

Higher inflation may benefit gold

Higher inflation in the US usually translates to rising interest rates which is usually negative for gold, as higher rates mean bigger yields which tends to leave...

Pound to fall as rates stay on hold

With all the uncertainty surrounding the UK at the moment such as political instability as well as the current Brexit negotiations that seem...

  


Share: