The gold price has been on a steady down turn over the last 2 weeks which caused a break down through the phycological $1300 mark and now the question on everyone’s mind is are the loses going to continue or is this just a temporary setback and the recent rally will soon resume.
One analyst who thinks more losses are on the horizon is Peter Spina, president and chief executive officer of GoldSeek.com who expects the gold price to slide further before the bargain hunters step in and push the precious metal in the right direction
Gold is “now is in consolidation mode, the potential for a drop towards $1,250, perhaps not all the way to $1,250, looks under way.” Mr Spina said
“Seasonal factors are not in gold’s favor at moment, but will shift as we go through March. So looking for a couple of weeks of weakness, consolidation until the market can regain its bullish momentum. That said, conditions are getting very oversold here and can stage a large upside move” he added.
The main factor putting pressure on the gold price t the moment is expectations that the US and `china will sign off on a trade deal in the nearest future and the uncertainty of this move is what has underpinned gold as a safehaven asset so if a deal is done we may see some added pressure.
The market also expects the US Federal Reserve to keep rates on hold this year but if the situation changes gold may face some added problems
“With a US/China trade deal expected before too long, a return to more broad-based growth may well come to the rescue. If so, demand for haven assets may diminish”. Said Adam Williams of Fastmarkets MB
“Gold was a bolthole for investors in the second half of 2018, but a return to more concerted growth should mean that prices will start to drift lower again in 2019, especially if the Fed’s more dovish stance proves short-lived.” He added.
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