Gold Moves Away From $1300: More To Come?
Rowan Crosby • 1 min read
Gold has been on a bit of a bull run of recent times, having finally taken out the 1300 level recently. After a period of consolidation, price has then started making its next leg higher.
There are a few reasons for the move. We got the first big push into 1300, on the back of a falling dollar.
However, the underlying risk-off trade that gold is so well known for, is starting to come back into prominence. Against a backdrop of global economic worries, gold is starting to regain some appeal.
We also have some risk ahead of the FOMC pushing on with rate hikes. Gold is a hedge against inflation and in the next 12-18 months, interest rates in the US will likely continue to move higher.
Analysts are now suggesting that $1,400 might be on the cards as we head into the back end of the year.
For me holding the $1,300 was massive and price has struggled to break through and it was really coiling beneath that level, which generally a sign of strength as it indicates a clear bid below.
Given the price action, I’m bullish on gold for the time being. The next key level for me will be $1,325, where we’ve seen some resistance in the past.