time to Cash in gold

It may be time to cash in your gold! Investors that have been riding higher gold prices for the past couple of months may soon consider cashing out.

Gold has increased by 9% already this year, almost doubling S&P 500’s performance. However, the change is after the precious metal gave us 12% back from the beginning of September through the end of the year.

A Technical Analyst at Piper Jaffray, Craig Johnson, says there is yet again a “relief rally” for gold.

Gold has recently taken a boost from the U.S dollar weakening. However, doubts are surrounding the future of U.S policy with President Trump’s failure of repealing the Affordable Care Act. The uncertainty seems to be boosting gold assets.

But the optimism on gold may run dry as it fights to surpass a critical level.

Johnson also says that at $1,260 an ounce, they’re experiencing major overhead resistance.

Convergex Chief Market Strategist, Nick Colas, says that within a steady market like this, investors need to make their moves carefully. Gold being at a one-month high may insinuate that it will be dropping soon.

However, another strategist believes the precious metal may be a better choice with the future political uncertainty.

Currently, the gold market is like a game of tug of war. Those worrying about the inflation that brought the market up are competing with others that are afraid of the current state of the market, and the world as a whole. Max Wolff from 55 Capital says those that are afraid most likely have the upper hand regarding information.

But other than the gold market being a “safe haven,” politics are still able to lower the number of rate increases from the Federal Reserve. However, this would be great news for bullion since the rate hikes usually help out the dollar value.