Gold seen nearing $1,500 as dollar sags

Gold seen nearing $1,500 as dollar sags by  for Gulf News

After years of underperformance, gold prices saw historic breakout of $1,350 in June

Dubai: The gold bulls seem to have woken from their slumber.

After years of underperformance, gold prices witnessed a historic breakout of $1,350 an ounce in June, breaking away from a six-year-long range of $1,200-$1,300.

Gold prices last week hit a six-year high of $1,454.40 last week, registering gains of 11 per cent in the year so far from January 1.

Gold prices have benefited from the continuing trade war between the United States and China, along with concerns over the health of the US economy.

“Gold is benefiting from the decline in the greenback’s value but there are other supporting catalysts driving investors towards the safe haven instrument” Konstantinos Anthis, Head of Research at ADSS said.

“There are $13 trillion in bonds out there that are offering negative yield to investors looking for protection amid a global slowdown — and a potential hedge against inflation from the upcoming central bank easing — so Gold’s zero-yielding nature appears rather appealing at this stage,” he added.

“This means that the rally doesn’t seem over at all and further dollar weakness and signs of incoming inflation could propel prices to $1,470-90 in the near term,” he said.


Global equities are expected to remain weak as analysts scale back expectations of a large US interest rate cut.

On Friday, the Dow Jones Industrial Average closed 0.25 per cent lower at 27,154.20. The S&P 500 index ended 0.62 per cent lower at 2,976.61. The US indices had hit a peak the week before, due to a dovish stance from the Federal Reserve.

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The Daily Coin

Rory Hall, The Daily Coin and Gospel News Network. Beginning in 1987 Rory has written over 1,400 articles and produced more than 500 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, Gold Seek, 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, Dr. Warren Coates and Peter Schiff, to name but a few. Don't forget to visit The Daily Coin and Gospel News Network to enjoy some of the best economic, precious metals, geopolitical and preparedness news from around the world.