Are Gold Prices Poised To Make More Gains?
Yesterday seen the first down day for Gold prices this week, after an official from the Federal Reserve started that interest rates in the USA may be increased earlier than had been expected by the markets. This announcement stopped Gold bulls in their tracks in the short-term, but the question remains are Gold prices poised to make a significant move higher?
The fundamentals are mixed. As stated, interest rate raises may dampen down any rise. However, the uncertainty around the globe for conflicts sparking off deployment of military forces remains in the forefront.
Gold is seen as a safe haven for investors in times of troubled market conditions. If the situation in Iraq worsens, or Ukraine, then a mass move from stocks to Gold may begin. And with stock indexes at record highs, the fall could be swift and fast.
Gold Technical Analysis
The technical analysis points to an undecided position. But there is a call to look at the current chart formation as bullish. Since the huge one day spike last week (19th June) Gold prices have consolidated near the high. If this was a weak move, built on speculation, then this rise may well have been retracted somewhat by now. Gold has a habit of attempting to reverse any spikes soon after they occur.
However, the price of Gold has held firm, which could suggest there is some strength and purpose to this move. If there are any further murmurings on Iraq and military involvement we may see price increase slightly further. There is a strong case for the $1400 level on Gold to be re-tested.
Whether this is the start of a sustained rise in prices is anyone’s guess. But I would be leaning more towards the technical analysis, rather than fundamental analysis, when uncertainty in the market and nervous investors come into play.
My personal opinion is (and this is not investment advice, I may be wrong!) that if the price doesn’t retrace the spike over the coming week, there may be some volume in the next attempt higher. I guess we will have to wait and see.
Most Popular Content
- Dollar Remains Strong As Oil Prices Fall
- All Eyes On GDP Data as Pound Holds Support
- Outlook for the Pound and Dollar
- Pound Still in Downwards Trend Fuelled by Economic Outlook
- Dollar Gains Ground into Veterans Day
- Rebound in EURUSD Makes a Sharp Retrace
- Dollar at Highs as Pound Forms a Base
- Concerns Over Economy Sees Mixed Sentiment On Pound
Currency Articles - Dec 12, 2014 11:47 - 0 Comments
More In Currency Articles
Gold and Oil News - Oct 7, 2014 17:44 - 0 Comments
More In Gold and Oil News
- Gold Falls But Higher Prices May Be On The Horizon
- Gold Prices Spike Higher On Increased Israel Tension
Shares and Markets - May 1, 2014 10:50 - 0 Comments
More In Shares and Markets
- Glaxosmithkline Share Price Rebound Halts On Slower Sales
- Royal Mail Share Price Will Not Be Investigated