Gold Is Maintaining Just Above $1,800, Will It Rise? Analysts are fighting over whether or not the U.S. dollar will spark a major sell-off of gold, or help it break through $1,900. Only time will tell in the ensuing weeks, but analysts are unsure where to go from here.
RJO Futures commodities broker Daniel Pavilonis has many things to say in this regard. Gold was surprisingly stable this week as it rose to almost $1,830 an ounce. The strength of the USD almost derailed it this week as well. The USD could still have a big impact on gold moving into the next week. A dollar decrease could boost the gold market and kick off another rally. That rally could push it to $1,920, some are saying.
“It is trapped under the long-term trendline under DXY. The U.S. dollar is either going to break to the upside or rollback. A decline in the U.S. dollar would be good for gold and might be the point we need to get to $1,920,” Daniel remarked. “Selloff to $1,600 could also come into play.” Not only this, but gold is still fragile concerning the U.S. Bond market, and could suffer a defeat if things fluctuate too much.
“Gold has to start closing above $1,840 to get emphasis to the upside. If the U.S. macro data continues to stay strong, interest rates will start to move, which has a reverse correlation to the precious metal markets. If that happens, gold could be under pressure,” Pavilonis also said.
Pavilonis has a prejudice that favors the positive outlook, but many investors still expect gold to move up more by the end of this month. “If we can close above $1,840, we got a fair shot back to $1,920.” MetaNews is analyzing a more balanced data set. Gold Is Maintaining Just Above $1,800, Will It Rise?.