Will gold continue rally?

30 October, 2018

For more than 2 weeks now, the gold price has been on a steady uptrend after volatility in world stock markets, and in particular, the US market which has caused investors to seek out gold as a safe haven and according to some analysts, this will be the key driver of the precious metals as the year comes to an end.

The Dow Jones index, which some say is the world barometer of financial markets has seen extreme volatility in recent weeks which has rattled traders and lest the market worrying whether this is some short term issue or  should we prepare for more.

"There are two camps diverging around the likely performance of the stock market, particularly in the short-term which is creating a push and pull for the gold market where we have seen some interest return on the back of those losses," said Daniel Hynes, an analyst from ANZ bank.

"But the flow hasn't been completely one-way and there is still some caution around the sell-off being potentially short-lived. And that has resulted in investors not fully switching out of equity markets into gold." He added.

A number of other risks related to financial stability are currently out there such as Brexit negotiations as well as the US elections due next month and this may further underpin the gold price and depending on the outcomes, give it a significant boost.

"Gold prices are still below where their fundamentals justify, especially if the current shift in risk appetite is sustained," said Christopher Louney at Royal Bank of Canada
"There is no shortage of geopolitical concerns, Italy's indebtedness and lack of a viable budget, uncertainty around Brexit negotiations, uncertainty around U.S. policy following U.S. Midterm elections are some of the risks," he added.


Source link  
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...

Gold may finally Breakout

Gold is now on track to rack up its 5th straight day of gains on the back of geo political factors as well as expectations the US Federal Reserve may...

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...

  


Share it on:   or