Gold: Fall is the time to buy on the dips!? A new wave of prices may become…

Spot gold rose $15 to as much as $20 on Friday, hitting $1,590.20 an ounce, its highest since January 8. Gold posted a 4.75 percent gain in January, its best monthly performance in five months.

An outbreak of pneumonia linked to a new coronavirus, analysts say, exacerbated concerns and led to a sharp sell-off in U.S. stocks, which posted their worst monthly performance since August, with the s&p 500 down more than 3 percent from its all-time high on January 17. The plunge in risk assets, no doubt to promote the market capital inflows of safe-haven assets, gold, yen and so on.

David Meger, director of metals trading at High Ridge Futures, said the outbreak remains a strong support factor as we see global growth concerns hitting other markets. As a result, we see safe-haven demand driving gold higher.

Tobin Kahn, chairman of Kahn Estate Jewelers, said there was a lot of risk aversion and that was positive for gold. “People are starting to realize what’s wrong with the U.S. stock market, and the average American is getting smarter, and they know there’s something wrong with this approach. Why are tech stocks up so much? People mean it’s a false sense of security.”

Kahn expects gold to rise to $1,800 an ounce by the end of the year, driven by uncertainty.

SMC Comtrade’s Vandana Bharti said there was still a lot of safe-haven demand and any pullback in gold prices was seen as an opportunity to buy on digs.

Jeffrey Halley, the senior market analyst at Oanda, said the current support level of $1,545 to $1,550 an ounce for gold was key, while the upside resistance was between $1,585 and $1,600 an ounce.

“The problem with the market is that you can’t price risk because of the uncertainty associated with it,” said Chris Weston, head of research at Pepperstone, a Melbourne broker. “It is likely that we will have a clearer definition of the containment situation between February 3-8.”

Next week, the market will usher in the US non-farm reports such as the big economic report; President trump’s annual state of the union address; The ongoing outbreak of novel coronavirus… These are likely to trigger a new wave of gold prices!

According to the weekly gold survey released by Kitco News on Friday (January 31), respondents are still bullish on next week’s gold price. Seventeen market professionals took part in the survey of Wall Street. Fourteen professionals, or 82%, expect gold prices to rise. Only three professionals, or 18 percent, expect gold prices to fall and none expect the market to move sideways.

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