Gold will stay in the limelight for more time
The stability of gold during last week pending the Fed's decision supposed a cautious period for investors. But once rates were decided to be kept accommodating, investors continue to chase gold as the precious metal saw its biggest weekly gain since June.
On Monday gold prices held steady as the dollar fell, but there is still room for investors to make some money. Keep on reading to go through last week's trajectory of gold prices.
The speculative rise in rates over the past week declined just as gold was about to rise. And, indeed, the Fed meeting has been described as a “let-down” as reflected in the timid rising gold price. This consequent fact, however, has had little impact if considering gold's maintenance of a consolidated position.
The pressure on the dollar lifted the yellow metal
Gold prices ended at $1,337 per ounce in the global market last week. Gold is starting to enjoy a multi-month positive trajectory, and the gold market may witness good action over these months given the upcoming US presidential elections.
If gold breaks its own stability around $1,355 per ounce in the next two weeks, it may make more gains before the year ends, targeting a value of $1,375. But there are even more confident forecasts in BusinessLine newspaper: “if gold breaks its barriers of $1,390-1,400 in the next few weeks, the metal will even target $1,420.
Gold's strong fundamentals favors its purchase
Investors will continue to chase gold due to the strong fundamentals of the precious metal and the negative news from the global economy. The economic situation in the EU is far from encouraging. A survey of professional forecasters by the European Central Bank has indicated that Brexit would reduce the Euro Zone growth by 0.26 percentage points.
Brexit is hitting people hard. Britain has recorded disappointing economic data in the last few weeks. With already a handful of countries moving to negative interest rates, and with more countries looking to loosen monetary policy, the global economy does not seem to be promising.
These factors influence gold positively, but the metal's own fundamentals will help in the next few years. For example, the demand for gold is exploding, specially in the central banks of Russia, Kazakhstan, and China. These countries have recently become large buyers of gold in the world market. But there is not enough gold supply nowadays; that is why the purchase of gold with today's prices has been a constant recommendation lately.
Gold will remain in the investors’ limelight for more time
Even though the dollar's movement needs to be closely tracked, the Capitalist Exploits website predicts that both the dollar and gold are likely to rise simultaneously in the long-term, which means that gold will also strengthen and will keep its demand.
Gold will undoubtedly keep its status of promising asset in the long-term, while its price together with its supply decrease make present times absolutely suitable for its purchase.
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