SimpleFX Blog
    Facebook Twitter Instagram
    Wednesday, June 29
    Facebook Twitter LinkedIn Telegram YouTube
    SimpleFX BlogSimpleFX Blog
    Banner
    • Home
    • News
    • Tutorials
    • Updates
    • Opinion
    • Trading Academy
    • Trading Schedule
    SimpleFX Blog
    Home»Analysis»Gold going to the 6-year highs at $1,400. Time to buy or sell?
    Analysis

    Gold going to the 6-year highs at $1,400. Time to buy or sell?

    Zach WrightBy Zach WrightJune 24, 2019No Comments3 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email

    The price of gold hit its highest level for nearly 6 years, lifted by the expectations of a more straightforward US monetary policy.

    Prices were up to $1,415.40 an ounce for gold futures on Friday, before investors went for cutting back the gains. The current trading price for futures is $1,396.15.

    [button link=”https://app.simplefx.com/login” size=”medium” target=”new” text_color=”#eeeeee” color=”#df4444″]SELL Gold[/button]        [button link=”https://app.simplefx.com/login” size=”medium” target=”new” text_color=”#eeeeee” color=”#3cc195″]BUY Gold[/button]

    Earlier in the week, the door was opened by the Federal Reserve for a potential rate cut sometime in the future. This sends the benchmark yield on the 10-year Treasury note to under 2% – a significant psychological level not reached since late 2016.

    Tracking the greenback against other currencies, the US Dollar Index was down to 96.687 after going above 97.6 previously in the past seven days.

    David Lennox, a resource analyst from Fat Prophets, said in an email to CNBC:

    “The negative correlation between the gold price and the US Dollar has driven investors into gold ahead of any weakness in the US Dollar.” He added, “As rates fall the US dollar will likely weaken as well,” and that weakness within the greenback “could be amplified” by a return to more relaxed policies. He also said that the geopolitical landscape, which is currently being ramped up, has provided a boost for the “safe haven premium” gold price.

    Gold has already reached the company’s end of year target of in between $1,375 to $1,400 an ounce according to Lennox, and there will, therefore, be a “pullback.”

    Strategists from DBS Group Research over in Singapore said that “Gold Prices have recovered from their lows and we think this rise could be sustainable.” The added, “Rising political tensions, lower bond yields and (a US dollar) on the verge of reversing should make the rest of 2019 exciting for the metal.”

    The move from the Fed followed the other major bank suggesting to more monetary stimulus if it were needed. Mario Draghi, the President of the European Central Bank, said this week “additional stimulus will be required” should the situation worsen economically in the next few months.

    Haruhiko Kuroda, the Governor for the Bank of Japan, also suggested that the central bank might “consider expanding stimulus without hesitation” on Thursday if the economy were to lose momentum in its approach to achieving the 2% target for inflation that seems ever elusive.

    Tensions between the USA and Iran have also increased thanks to Iran’s shooting down of a drone from the US yesterday. According to the New York Times, Trump permitted military strikes before pulling back abruptly on many Iranian targets.

    featured gold
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous ArticleTrump Shifts to Currency War. Is it the End of the “Strong Dollar” Policy?
    Next Article As Bitcoin hits $11,000 it’s time to ask – is this the bull run we’ve been waiting for?
    Zach Wright

    Related Posts

    A Possible Rebound Scenario for Japanese Stocks?

    June 28, 2022

    How Long the Recent LTCUSD Run Can Last?

    June 24, 2022

    Is BMW Worth It After the New China EV Plant Activation?

    June 23, 2022

    Leave A Reply Cancel Reply

    Copyright © 2022. SimpleFX
    • SimpleFX WebTrader
    • Unilink Affiliate Tracker

    Type above and press Enter to search. Press Esc to cancel.

    We and our partners use cookies for analytics purposes and to serve personalized ads. You can view our privacy policy here and our cookies policy here
    Accept.
    Privacy & Cookies Policy

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
    Necessary
    Always Enabled
    Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
    Non-necessary
    Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
    SAVE & ACCEPT