Gold price is stuck below $1,800, when can it break out?Very timely article explaining what ifs due to growing uncertainty with China, Hong Kong, US dollar relationship with Gold in both short and long term;
“Gold is acting very well. We are seeing it come off from a bottom alongside a stronger dollar. Gold tested $1,722, which is a 20-day moving average. That is encouraging going into the long weekend,” LaSalle Futures Group senior market strategist Charlie Nedoss told Kitco News on Friday. “It is big that gold can make gains with the stronger dollar here.”
Gold and the fear trade
In the short-term, increased geopolitical tensions could actually hinder gold’s move up because they boost the U.S. dollar, TD Securities head of global strategy Bart Melek pointed out.
“Whenever those tensions rise up, you have the Chinese RMB weaken and the U.S. dollar firm up. The danger for gold is that we could get a shoot up in volatility, which generally doesn’t include anything else but dollars. When the U.S. dollar firms up, gold doesn’t do too well. In the short-run, these tensions will likely get people more into the safety of U.S. dollar and gold could suffer,” Melek explained. "Longer-term, it is a different story.”
ReferenceLink:
https://www.kitco.com/news/2020-05-22/More-tailwinds-ahead-for-gold-price-Is-the-U-S-China-trade-war-back-on-the-table.html Cheers to the patient investors