Gold ready for breakout to the upside

1 December, 2017

The gold price has certainly behaved strangely this week, failing to react to news which would usually send the precious metal considerably higher. In fact after North Korea launched another missile on Tuesday (A missile capable of hitting anywhere on the US mainland) gold actually fell and even Donald Trump’s statement after the launch that “We will take care of that situation.” Didn’t help either.

It seems as if the market is preparing to overlook significant events which would usually trigger a rally in gold which is why it has remained largely range bound between $1,270 and $1,300 for the best part of 2 months, making it one of the tightest trading ranges of the last decade.

The good news for gold is that it has also held up well against news that would usually push it lower including an expected rate hike from the US Federal Reserve next month as well as proposed tax reforms in the US which are likely to get the go ahead from the US senate this week.

As we approach the end of the year, and news such as rate hikes and tax reforms already priced into gold, some predict this tight trading range is bound to end and gold is poised to break out to the upside.

 “It’s been eerily quiet in the gold and silver markets over the past few months. A breakout could happen as we approach this Fed meeting,” notedMichael Dudas from Vertical Research

“With this low volatility, an event can spark a move either way. We think gold is going higher” he added.


Source link  
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...

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...

  


Share it on:   or