The Gold price jumped to a 2 week high in today’s trading as the market pushed back expectations for a rate hike this year from the Us Federal Reserve.
At 6.25pm (GMT) gold was trading at US$1,347 up from US$1,326 in yesterday’s trading.
The price of the precious metal has been trading within a US$40 range for the past 3 weeks as traders remained skeptical on whether the Fed would tighten monetary policy which lent significant support to the price.
Now that a rate hike is virtually out of the question this month or probably even for the rest of the year after last Friday’s disappointing non-farm payrolls and unemployment figure, the gold price may make a run for the US$1,400 mark,
“Technically speaking we are only grinding higher when it comes to gold and the there is no bullet-like move,” said Naeem Aslam, chief market analyst with ThinkMarkets.
. “We need to break above the $1,345 level in spot pricing before we can say that the upward trend will continue. The support of $1,305 is saving the downside.” he added.
Mark O’Byrne, a director at GoldCore in Dublin also weighed into the picture by adding that gold may be headed for further gains, as autumn and in particular the month of September have been good for the Goldprice in recent years,
“Given the backdrop of one of the most uncertain macroeconomic, systemic, geopolitical and monetary outlooks both the U.S. and the world have ever seen, we are likely to see gold do well in its traditionally seasonal strong period,”
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