Donald Trump has done a u-turn. Investment bank: gold is expected to rise further this year!

The gold market has firmly broken through the $1,900 / oz barrier and breached a key resistance level near its 2011 all-time high. One German bank said gold had further room to rise before the end of the year.

Gold saw renewed buying momentum after hopes revived that US politicians could reach agreement on a comprehensive stimulus package to shore up the fragile economy. U.S. President Donald Trump said on Twitter earlier this week that he would end stimulus talks until after the November 3 election.

By the end of the week, the gold market had regained all the ground it had lost this week and was at its highest level in two weeks.

Spot gold closed at $1928.99 an ounce, up $35.69, or 1.89 percent, after hitting an intraday high of $1930.30 an ounce and as low as $1892.27. This week, spot gold was up $30.59, or 1.61 percent.

COMEX Gold futures for December delivery closed up 1.6 percent at $1,926.20 an ounce, after gaining about 1.0 percent on the week.

In a telephone interview with Kitco News, Commerzbank precious metals analyst Daniel Briesemann said it was difficult to say whether this was the beginning of a new gold rally because the market was so volatile. However, he added that he remained bullish on gold prices for the rest of the year.

“We have always viewed gold below $2,000 as a buying opportunity,” he said. With so much money in the financial markets and more to come, we think gold will be well supported for the rest of the year.”

Briesemann, in a note to clients on Friday, said that while Trump appeared to have made a “complete u-turn,” a deal was unlikely before the election.

However, he added that the gold market does not need to see a full stimulus package to push it higher.

“We do expect a stimulus package, it’s just a matter of time.” Briesemann said in his comments to Kitco News. “All this back-and-forth talk about stimulus has created a lot of uncertainty in financial markets, and investors don’t like uncertainty, which is an environment that will be positive for gold in the short term.”

In addition to the election and economic uncertainty, Briesemann said he is also looking at the dollar. Gold’s gains on Friday came as the dollar fell to its lowest level in nearly two weeks. The dollar index closed at 93.03.

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