Gold is showing incredible price potential right now as the bulls seize command. The reinvigorated precious metal has gained more than £98 ($113) in less than a week. It is now trading at a three-week high with further price increases expected.
The yellow metal is currently sitting comfortably at around £1,518 ($1,734) thanks to a resurgence in safe-haven demand and a stuttering U.S. dollar index. The gold bulls are also benefiting from a return to risk off sentiment as soaring energy costs, rising inflation, geopolitical tensions and falling U.S. Treasury yields torment markets.
Edward Moya, senior market analyst for OANDA, says that we may well have seen the lowest price levels for gold in days past, with new gains now on the horizon.
He explained, “Gold’s bottom is in place now that the U.S. is showing clear signs the labour market is softening. The key for gold will be the nonfarm payroll report. As long as we don’t see an extraordinary strong print, gold should remain supported here and poised to test the £1,533 ($1,750) region.”
Given the scale of price increases over the last few days, that level could easily be achieved before the end of the week. Buy now.
