Search

Gold Prices Up In The Midst of Increasing Unpredictability

By Alex Ho


Investing.com - Gold prices were on the rise Friday morning even as investors reduce their risk in an increasingly unpredictable market.


Gold Futures inched back towards the $1,500 mark after taking huge swings between $1,457.9 and $1,486 in the last session. Prices for the yellow metal rose 0.55% to $1,489 by 11 PM ET (3 AM GMT).


As the COVID-19 pandemic continues to threaten recession, global efforts to sooth equity investors in the past week cut into gold’s reputation as a safe-haven. Investors flocked to the strengthening U.S. dollar in a scramble for cash to cover losses in other markets.


Vivek Dhar, an analyst at Commonwealth Bank of Australia, explained to Bloomberg, “While stimulus measures/rate cuts - including the ECB emergency bond-buying program - are usually positive for gold, we think any support will be short-lived,” He added, “There is a clear preference for the U.S. dollar over gold as global market risks intensify, and that should pressure gold prices lower in the near term.”


Gold prices “can’t catch a break” said Ed Moya, Oanda market analyst, in a Thursday note. But he sounded a more positive note as he added, “The last 24-hours yielded additional stimulus measures from the Fed, ECB and BOE, which should clearly provide gold a springboard that will shoot prices higher once the scramble for cash eases and dollar loses its crown.  If the $1,450 an ounce level breaks for gold, we could see one last extreme selloff before long-term bulls jump back in.”

CALL TODAY

(833) 600-GOLD

Copyright © 2019 The Oxford Gold Group - All Rights Reserved. The statements made on this website are opinions and past performance is no indication of future performance or returns. Precious metals, like all investments, carry risk. Gold, silver and platinum coins and bars may appreciate, depreciate or stay the same depending on a variety of factors. The Oxford Gold Group cannot guarantee and makes no representation, that any metals purchased will appreciate at all or appreciate sufficiently to make customers a profit. The decision to purchase or sell precious metals, and which precious metals to purchase or sell, are the customer's decision alone, and purchases and sales should be made subject to the customer's own research, prudence, and judgment.