The gold price is taking a breather today after 6 straight days of gains but some think the break is only temporary and further gains are coming in the days ahead.
US president Donald Trump’s effort to push through new healthcare measures as well as an array of other policies is having a devastating effect on the US dollar at the moment and pushing investors towards gold.
And with the healthcare bill set fall short of the number of votes needed to pass, gold looks set to benefit further.
"We remain cautiously constructive on gold as we see no end to dollar weakness for the moment given the ongoing political dramas in Washington and the approaching deadline to extend the debt ceiling," said INTL FCStone analyst Edward Meir.
"There seems to be very little progress being made on a number of 'pro-growth' Trump initiatives, all being net bullish for gold," he added.
Tomorrows interest rate decision from the US Federal Reserve is also likely to create some movement in the gold price and although no changes in rates are expected, the following monetary statement will be closely monitored for signs of a potential rate hike later in the year.
Some believe the statement will be dovish in light of recent inflation figures out of the US which are still below the Feds target rate which should also help the gold price
"We may seem some consolidation here from the dollar but fundamentally our bearish view on it remains," UniCredit Global Head of FX Strategy Vasileios Gkionakis said.
"What the Fed says tomorrow is the million dollar question but the risk is that they sound a bit more cautious after the fourth consecutive downside surprise in inflation." he said
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