Gold may finally Breakout

21 November, 2018

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 not lift rates higher than earlier expected from current levels.

The uncertainties surrounding Brexit, have caused a political storm in the UK and the chances that the country may have a new PM in the Nearest future after Theresa May is ousted has been very supportive for gold at the expense of the Euro and the pound which have suffered as a result of Brexit as well as the potential leadership challenge.

Trade tensions between China and the US also rose to the surface over the last few days and the chances of some sort of agreement being reached before the end of the year now looks pretty remote which has also supported gold.

"Trade tensions remain heightened between the U.S. and China, global equities are under pressure, while Brexit negotiations continue to create uncertainty across markets, keeping gold's safe-haven status intact," said traders from MKS PAMP

One of the main reasons that gold has been subdued in recent months is expectations that the US Federal reserve will continue to act aggressively with regards to raising interest rates next year which makes the US dollar a more attractive investment due to its interest earning ability which gold does not have.

This however may be changing and more and more analysts are beginning to predict that the Fed may not lift rates much higher going into next year and they may be setting the groundwork for this by their recent actions.

This may be the catalyst for gold to really set itself up for a bull run as investors exit the US dollar.

"The Feds have changed the landscape to a more dovish terrain suggesting that they too are turning a little bit risk-averse," said Stephen Innes, from OANDA in Singapore.


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