Interest Rates, Inflation, and Presidential Issues Point Up for Gold
By: Jeffrey Nichols
Gold prices of late have been testing support just under the market, if you will, preparing for a healthy rally into higher territory.
As I see it, a relatively small group of hedge funds and institutional speculators have been calling the tune for gold, trading the recent range, buying on dips, selling on rallies, and gradually adding to their physical holdings – a behavioral pattern we expect will continue within a rising trading range – at least until a price well above the $1300 an ounce level is established.
Contributing to support under the market, price-sensitive Asian traders continue to bottom feed, accumulating bullion for the billions of gold-friendly households in their region with cash to spend.
Meanwhile, short-term hour-to-hour and day-to-day price action has been governed by the latest news with respect to interest rates, inflation, the dollar, and President Trump’s issues in th…