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  
Aussie dollar up on Chinese data

The Australian dollar remains firmly above the US70c mark in today’s trading session after a strong round of data out of China alleviated...

Pound may hit $1.37 by years end

The British pound is expected to face increased volatility over the coming months as the deadline approaches for the UK to leave the EU at the end...

Has the US dollar peaked?

The US dollar has made significant gains against all the major currencies over the last month as worries over trade tensions between...


Pound may suffer in the long term

The British pound continues to power ahead in today's trading session after yesterday's developments in the British parliament that many see as ending...

Gold needs to remain above $1300

The gold price has staged a substantial rally since last week after the US Federal Reserve latest board meeting where they stated that any move...

Only way for oil is down

The oil price has now broken down through the all important $50 mark, which is a physiological blow to any chance of a rally, and according to...


D-Day for the pound

Traders and Fund managers alike are expected to be glued to their desk on Tuesday evening UK time as the British parliament vote on the Brexit Deal put before them...

Will gold's rally continue?

After spending the majority of November range bound, the gold price has finally broken out to the upside as investors seek out safe havens from the anticipated...

Dollar could weaken for years

The US dollar has been the star performer in the currency markets this year, gaining solidly against all the major currency but some are beginning...

  


Share it on:   or