Global gold rates inched slightly lower at the end of trading on Tuesday, after having maintained a tight range during the whole day of trading. The price of Gold stayed within a tight range, after it was pressured by a slight uptick in dollar’s rates. There was, however, light trade during the day, as the United States gears up for the Thanksgiving holiday.
U.S gold futures dipped down by some 0.1 percent to drop down to $1,224.1 per ounce.
“(Trade) is relatively sideways at the moment… gold does not have its own momentum behind it, it is simply responding to external forces rather than any energy and vigour of its own,” said Ross Norman, who is the chief executive officer of Sharps Pixley. He further mentioned, “We see gold trading in a $1,215-$1,240 range for the remainder of the year.”
It is believed that a downtrend in the global market for stocks has influenced interest towards safer investments like gold. Gold has for long been considered as a safe investment for investors during times of socio-political adversity.
“Trade tensions remain heightened between the U.S. and China, global equities are under pressure, while Brexit negotiations continue to create uncertainty across markets, keeping gold’s safe-haven status intact,” said traders at MKS PAMP in a note from today.
Forex and bullion investors also have a keen eye on happenings in the G20 summit, as China and the United States will conduct trade talks during the meeting.
Gold Should Push Past $1,240 for Trend Reversal
With some good sessions under the belt, optimism within gold traders is on the rise. Traders are expecting overly bullish trends on the precious metal, but a recent interview by prominent analyst and entrepreneur Greg Harmon has generated some substantial facts about the situation.
Talking to media just yesterday, Greg mentioned that there wasn’t enough reason to be overly happy now. Prices should push past the October high of $1,246 per ounce for positive energy to be generated about the yellow precious metal.
“We are starting to see higher lows, but we still need to make higher highs,” Greg said. “A push above $1,240 an ounce would signal a trend reversal. We see some good momentum on this bounce, but we still need a little bit more.”
While the prices for gold have maintained a tight range since the last couple of days of trading, there was positive energy in the market during last week. The market is seeing renewed interest from investors, because of the current risks associated with the dollar.
While gold has seen some solid movement during the year, Harmon still believes that the last 5 years have been extremely non-volatile for the market. One can tell by looking at gold charts that the price has been stuck in a $200 range.
“When you look at gold, it really hasn’t done anything since 2013,” Harmon said. “Investors should play in the moment. Buying when the price bounces off the bottom and selling with it bounces off the top.”