Gold needs some big news

1 March, 2019

The gold price is under further pressure in today’s trading session as investors ponder the chances of another rate hike from the US Federal Reserve after the release of bumper GDP numbers from the US.

Most analysts had been expecting a figure of around 1.9% but the final figure that hit the market was 2.6% and that has now firmly put the chances of another rate hike from the Fed a real possibility.

Gold had benefited immensely over the last month as investors exited the US dollar in favor of the precious metal after believing the Fed was done with raising rates which meant the Greenback had lost its appeal as a yield bearing asset.

If the belief of higher rates starts to gather some real momentum the price of gold is likely to pull back even further.

According to some analysts, if we look at the gold price over the last several years, it has failed to move much past the current price and it is going to take some big news such as a concrete trade deal between the US and China or a firm commitment by the Fed that further rate hikes are off the table before gold finally make a significant move higher.

“Prices have run up to the top end of the trading range they have held for the past five years,” says Rob Haworth, senior investment strategist at U.S. Bank Wealth Management.

“Without further easing in financial conditions, ramping inflation or stock market volatility, gold prices are likely to struggle at the top end of this five-year trading range,” he says.


Source  
Oil reaches critical moment15 Jul, 2020  

Oil is once again showing how sensitive it is in regards to the coronavirus, and as the number of cases continue to grow in the US and elsewhere, some say...

Gold looking towards $180022 Jun, 2020  

The gold price is pushing higher once again in today's trading session, following on from last Friday's gains as some in the market raise fears about the recovery...

U.S. riots: curfews and troops imposed in 40 US cities3 Jun, 2020  

US authorities impose curfews in major cities due to riots that began with protests against the killing of an African American by police in Minneapolis...


American chaos and weak PMI1 Jun, 2020  

Riots intensify in the US. Clashes between protesters and police continued in the country's largest cities from New York to Los Angeles, forcing Amazon.com Inc. restrict...

Economic calendar for the week 1 Jun, 2020  

Slowly but surely, business activity indicators in the world are growing. #Covid19 pandemic has long reached a plateau and is in decline. The OPEC+ ministers...

Brexit: deadlock again28 May, 2020  

Recently the media reported that British Prime Minister Boris Johnson is planning to fly to Brussels in the second half of June. However, there are no special...


Swiss Bank sells off CHF28 May, 2020  

Yesterday, the head of the Swiss National Bank (SNB), Thomas Jordan, spoke about the state of the monetary policy in Switzerland - the main message is that now...

EU unveils 750 bln euro plan for coronavirus recovery28 May, 2020  

On Wednesday the European Commission announced an anti-crisis plan, under which it will pay the EU countries 750 billion euro, instead of 500 billion...

EU Antivirus Fund26 May, 2020  

The path to the euro's recovery is likely to be bumpy. Four European Union countries already nicknamed the "mean four" in the media are to blame. They categorically...