The gold price has bounced back in today’s trading after racking up losses on the back of a deal between the white house and Congress and some say yesterday was just a small bump in the road and more gains are on the way.
After yesterday’s deal between the White House and congress to reach a deal to extend the deadline on the federal government’s debt ceiling until December 15th, gold was pressured as it was one of the first times that both sides have seen eye to eye since Donald trump became US president.
The good news however did keep a lid on gold for too long, as other news hit the surface, such as allegations that North Korean president Kim Jong Un had ordered more missiles into place in preparation for another launch which left investors running for the safety of gold.
With the situation in North Korea unlikely to die down any time soon, the price of gold looks set to keep moving forward,
"There is a combination of events driving gold higher, including both political uncertainty and hedge fund buying. If these extreme political circumstances continue it could drive the price to $1,400," said Nizam Hamid, ETF strategist at WisdomTree said
Mr Hamid also noted that until now, the biggest part of investors have shied away from gold, preferring to invest in other assets such as stocks and real estate, but with the stock market at record levels they may decide to also join in the gold rush which will only push the price even higher,
"Given where valuations are for other asset classes, there is real potential for gold to continue to rally, especially if mainstream investors get in on the trade." He added.
|By clicking "Continue" you will be redirected to the website operated by FIBO Group Holdings Limited, a company registered in Cyprus and regulated by CySEC. Please familiarize yourself with the Terms of Business through the link. Click "Cancel" to remain on this page.|