Gold takes a breather, comeback predicted

27 November, 2017

The gold price has drifted slightly lower for the 2nd day in a row on the back of profit taking as the US as the US celebrates thanks giving but some predict it’s only temporary and rebound is on the cards next week.

The main beneficiary for gold is going to be the inevitable pullback in the US dollar which investors have been flocking to over the last few months in anticipation of future rate hikes from the US Federal Reserve which doesn’t look as certain as previously.

Most in the market believed that the Fed would hike rates 4 times over the next 13 months with the next one coming in December followed by another 3 hikes next year as the US reaches full employment and business confidence surges due to the proposed tax cuts to be introduced next year.

Some analysts now believe that only 2 more hikes will be delivered from the Fed over the next year which will not be enough to support the US dollar as an interest bearing asset and investors will look elsewhere and gold is set to benefit

"I think gold will move back towards $1,300 next week or the week after, maybe on the back of dollar weakness," Georgette Boele, commodity strategist at ABN AMRO in Amsterdam, said. "There are still some longs in the market, so there's more technical momentum as they try to push prices up again to see what happens in the last weeks of the year."


Source link  
Impeachment talk boosts gold

The gold price hit is highest level in 3 weeks yesterday after calls for the impeachment of US President Donald Trump left financial markets...

Oil to hit $75

The oil price surged as high as 20 percent is yeaterday’s trading session after an attack on Saudi Arabia’s biggest oil field removed more than 5 million...

Gold headed for $1600

The gold price remains steady today after turning back from what was beginning to look like a solid rally yesterday after words by US President...


Euro awaits Jackson hole

Despite all the pressure facing the European economy the Euro has managed to remain above the $1.10 level, but it seems the market is predicting...

Gold's next target is $1600

The gold price has taken a breather over the last few days after rallying more than $100 dollars in the space of 2 weeks and some...

Gold rally not over

The gold price remains firmly above the US $1500 dollar mark in today's trading session as traders seek out the precious metal as a safe haven on the back of political...


Gold poised to hit $1500

Gold continues to surge in today's trading session, following on from last weeks solid gains as investors seek out safe havens against the...

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...

  


Share it on:   or