This week, 17 traders and analysts took part in a Wall Street survey. Nine voters, or 53%, see gold prices rising by next Friday. Two, or 12%, see lower prices, while six voters, or 35%, are either neutral or expect sideways trading.
With gold lingering just below a very key psychological level, a few analysts warn that the market needs a new stimulus to push it above the $1,300 threshold. There have been two previous attempts by the market to push past the $1,300 level and both came up short.
Not only is weak U.S. & World economic data keeping gold supported, the market has made significant gains on the recent rising tensions between the North Korea and the U.S.
Next week should be a week to watch for gold as we should see more reconciliation attempts by North Korea and the U.S. to avoid an unwanted war between the two nations. If that is the case, then gold could cool off a bit. But, if the tensions continue and increase, gold and silver should see a gain in price.
Bullish investors say gold has strong technical momentum for two reasons: The U.S. dollar remains week against other international currencies and interest rate expectations remain low.
North Korea is not the only geopolitical hot point affecting the gold and silver market. Other factors apply, as well.
Inflation was expected to rise by 0.2% in the month of July, but only rose 0.1%. This inflation figure has an impact of interest rates. Since inflation hasn’t risen as expected, the Feds are weary about raising interest rates.
Gold prices hit a two-month high in early U.S. trading on Friday prior to the release of this data. In an immediate reaction, prices jumped, with December Comex gold last seen at $1,296.40, up 0.48% on the day.
So, if you’re on the fence about whether you should invest in gold and silver, my first piece of advise is do all the research you can. Don’t buy on emotional decisions or on waves of recent market highs. If you’re ready and want more information, please feel free to contact me via telephone or email. Thank you for your time.