Ongoing consolidation in Gold is healthy - UBS
|Gold's ongoing consolidation between the 100- and 50-day moving averages is healthy, as it will ease some of the persistent concerns on positioning and create room for further gains, according to UBS analysts.
Key points
- Gold traders should watch out for the US economic data, the US-China trade-related newsflow and the resulting impact on the Federal Reserve's monetary policy.
- Uncertainty is likely to persist, forcing the central banks to keep rates low.
- Gold can trade through $1,600 in 2020 and $1,550 over the next three months.
The yellow metal is currently trading at $1,460, representing nearly 14% gains on a year-to-date basis, having hit a high of $1,557 on Sept. 4.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.