Gold Ready To Make A Move
Back in the commodity space, gold price has moved higher once again because of the dovish stance adopted by the Fed. The precious metal price is trading near three-month high and it appears that the price may touch the level of 1350. The dollar index has touched seven week low, and the economic number released yesterday also confirmed that it is highly likely that the Fed will take some more favourable steps towards their monetary policy in order to stimulate the economy. As long as the dollar continues to move lower, I think it is likely that the path of the least resistance for the dollar price may remain to the downside.
Trade woes have taken another shape after Trump said that the is going to go ahead with trade tariffs on Mexico. The comments around more tariffs on Mexico, and the weakness in the dollar index, have brought major moves in the gold price. We have also seen more inflow in the gold ETFs and this confirms that the appetite for gold has strengthened.
