As the US dollar continues to go down from its rally, gold sees it’s chance to rise, as it did for the first time in 11 days.
Since it’s last high Aug. 28, the precious metal has dropped 1.5 percent as the dollar becomes weaker. On Wednesday, the currency fell after trade ties and economic agreements were made with EU and Germany. Doing so gave an immediate boost to the pound and euro.
For several months now, gold just hasn’t been able to pick up the steam as was able to do before. However, the future of the precious metal does look to be on the brighter side.
The US Dollar And Gold Continue To Go Toe To Toe As Gold Picks Up Momentum
After a fall on Tuesday to $1,198.20, gold was able to jump up 0.5 percent, coming in at $1,196.40 per ounce on Wednesday.
Gold futures for the U.S for the month of December are settling around $2.20 or $1,201.30 per ounce. Since it’s peak in April, gold has gone down 12 percent and that’s not a good look.
Currently, trade concerns are supporting the US dollar. However, there is a deadline on its way when it comes to the China and the US. Canada continues to refuse to bow down to demands from the U.S. as they continue to talk trades at Washington.
Items that were gold positive were technicalities and momentum. According to analysts at ScotiaMocatta, until gold is able to close at more than $1,200.70, the technical picture will continue to be in a gray area.
Matthew Badiali, a senior research analyst at Banyan Hill research, was able to insert his two-cents on the issue. He says that if gold were to break at around $1,215 an ounce, it would be evidence that the way gold is doing better and the US dollar not so much.