Gold Prices Inch Higher amid Fading Prospects of US Interest Rate Hikes
Gold prices went up to a 2 week high on Tuesday as the US dollar prices slashed to a multi month lows due to doubtful prospects of further interest rates hike by US Fed this year. There is also doubt on President Trump’s ability to push it through healthcare reforms.
A weaker dollar will continue to support gold
Market analysts have their opinion that the market would see a weaker US dollar which will in turn continue to support Gold on prices. The factors counting to this lift are doubts on US Interest rates hike this year and the US President’s Trump’s lost reflationary reforms. US Senators Mike Lee and Jerry Moran announced a revised Republican healthcare bill on Monday giving a serious blow to the legislation.
Statistics on Gold
A rise of 0.3% on Spot Gold was observed which took it to $1,237.05 per ounce at 13:28 GMT. US Gold futures for the delivery in August increased by 0.3% to $1236.90 an ounce. A Gold analyst remarked that at this moment, Gold’s trading range is likely to be between $1200 and $1250.
Prices of Gold can break above these levels
Since there are no other major drivers for Gold prices at the moment, the Gold prices can break above these levels. The resistance faced by the Spot Gold is at $1239 per ounce and Gold may temporarily move below and near this level or can go towards a support at $1226, according to another commodities technical analyst.
Yaron Mazor is a senior analyst at SuperTraderTV.
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This article was originally posted on FX Empire