What are the fators to influence Gold in May 2018?

What are the fators to influence Gold in May 2018? from Scrap Register

NEW YORK (Scrap Register): May could have a few surprises up its sleeve for gold traders, according to INTL FCStone, including Iranian nuclear deal as well as a close below $1,303.

Gold’s trading range for this month is projected to be between $1,285 and $1,338, commodities consultant with INTL FCStone Edward Meir said in Monthly Market Overview report published on Wednesday.

Some of the main downward price pressures will continue to be the U.S. dollar’s strength and rising interest rates.

“On the rate front, the ten-year pierced the 3% mark for the first time in four years before ending the month at 2.94%. Curiously, the rate rise does not have much to do with a particularly hyper-charged US economy,” Meir wrote.

“Rates seem to be rising on account of inflation concerns, as the fear is that increasing trade protectionism and advancing oil prices are contributing to rising input prices. But this does not seem to be helping gold for the moment, although at some stage, it should,” he added.

Meir suggested that what could be holding investors back from buying more gold is the sentiment that accelerating inflation could be just temporary.

Also, there is a hold-up in the inverse correlation between U.S. equities and gold prices.

“We suspect that we need to see a more substantial correction in stocks before gold takes notice since the choppy up-and-down moves we have seen thus far are not going to do it,” Meir said.

What’s important to keep a close eye on in May is the development of the Iran nuclear deal, which has the potential to push gold prices out of its trading range on the upside. “A looming May 12th decision on the Iranian nuclear deal could usher in some buying on the back of higher oil prices,” Meir pointed out.

Continue Reading / Scrap Register>>>

Sharing is caring!

The Daily Coin

Rory Hall, The Daily Coin. Beginning in 1987 Rory has written over 1,000 articles and produced more than 300 videos on topics ranging from the precious metals market, economic and monetary policies, preparedness as well as geopolitical events. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver, Silver Doctors, SGTReport, and a great many more. Rory was a producer and daily contributor at SGTReport between 2012 and 2014. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente and Peter Schiff, to name but a few. Don't forget to visit The Daily Coin and Shadow of Truth YouTube channels to enjoy original videos and some of the best economic, precious metals, geopolitical and preparedness news from around the world.