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.
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