- US Dollar has been under pressure midweek, Gold climbed over 0.6%.
- Gold prices have come into their own again amidst continued geopolitical angst.
The price of Gold rose 0.60% to $1489 and change having topped out at $1491.80, rising from a low of $1477.20 on the day as investors continued to monitor global political news surrounding trade and Brexit, and reacted to a weaker-than-expected reading of U.S. retail sales, supporting precious metals.
The US Dollar has been under pressure midweek, down over 0.30% at the time of writing while testing below the 98 handle for the first time since the middle of last month. A fall in retail sales raised concerns about the momentum in consumption, but the NAHB housing index rebounded to its highest level in 21 months yet the Dollar was under pressure.
Gold bugs will only rejoice should guidance open the door to further cuts
However, Gold prices have come into their own again amidst continued angst over trade wars and various other geopolitical uncertainties, such as Hong Kong, the Middle East and Brexit. The switch in risk sentiment supported Gold for December delivery on Comex to climb $10.50, or 0.7%, to settle at $1,494 an ounce on Wednesday, paring back the majority of the prior day’s losses.
“We still think gold remains attractive, given that the market is still somewhat underpricing the likelihood of an October cut, which suggests that Fed pricing should still remain supportive. That being said, gold bugs will only rejoice should guidance open the door to further cuts, which may just be too big of an ask for this meeting,” analysts at TD Securities argued.
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