The gold price has bounced back today after falling for most of the last week, as some analysts are beginning to give some bold predictions as the year unfolds.
The reason the precious has performed so poorly over the last 7 days is on the back of the US Federal Reserve’s latest interest rate decision where no changes in rates were made, but was backed up by a bullish monetary statement that included hints of further rate rises.
That was followed up by US President Donald Trump’s decision to fire FBI director James Comey over his handling of THE email scandal involving Hilary Clinton, but some believe a more sinister reason was behind the move such as covering up the Administration’s connections with Russia.
It seems that gold was drastically oversold after the Fed’s speech and Trump’s shock decision, and a rebound is in the making,
"It looks like gold is following stocks and the U.S. dollar, but overall I would say it may have found a bottom, at least for the time being," noted Afshin Nabavi, head of trading at MKS in Switzerland.
One of the most bullish predictions comes from Toni Teves of UBS bank who says gold is likely to average a price of $1,350 for the remainder of the year
"Gold allocation within a portfolio is warranted given a relatively benign rate environment, modest growth acceleration and elevated macro risks. We think further gains in gold are likely to be driven by a continuation of strategic portfolio allocation from a diverse set of investors.” He said.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs with this broker. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs with this broker. Before deciding to trade foreign exchange you should consider whether you understand how CFDs work, your investment objectives, your level of experience and readiness of taking risk. The possibility exists that you could sustain a loss of some or of all of your initial investments and therefore you should not risk more than you are prepared to lose. Please seek independent financial advice if necessary.
|By clicking "Continue" you will be redirected to the website operated by FIBO Group, LTD company registered in BVI and regulated by FSC. Please familiarize yourself with the Customer Agreement through the link. Click "Cancel" to remain on this page.|