Gold Is On Fire For Two Weeks In a Row
Gold has been on fire for the past two weeks. However, investors have been on high alert as Congress is keeping the dollar low for the last seven weeks. Doing so has made bullion cheaper for those who buy it with different forms of legal tender.
Gold has gone up 1.4.% since last week and even reached $1,253.12 an ounce, the highest it’s been in over a month. Gold futures in the U.S. were at $1,244.80 and ounce, dropping 0.2%.
Can Gold Keep Up The Momentum?
So far, gold has been on the winning team since the dollar has gone down. It was able to survive after Trump’s healthcare reform did not pass.
Trump has been ruffling feathers in the last couple of weeks, as he is demanding support from lawmakers on his health care bill.
Robin Bhar who works at Societe Generale said that whatever happens with the bill will not only impact gold, but all assets deemed “risky.”
She said that if the bill doesn’t pass then holders should see some type of haven. It would mean that any other programs he tries to put out have a higher chance of failing.
According to Tim Brown at MKS PAMP, if the market can go above $1,250 within the next few days, we will see an aim around the 200-day mark for about $1,259.50.
On another note, the focus could shift from Congress, and the decision can be up to the Federal Reserve. James Bullard, William Dudley, and Charles Evans, all federal officials, are set to voice their opinions on Friday. Investors worry about the Feds raising the velocity in which interest rates go up. The raise will put stress on gold prices, increasing the dollar and ruining the cost of non-yielding bullion.
Silver went up 0.5% making it $17.63 an ounce.
Platinum rose 0.2% than last week, resting at $960 an ounce. Palladium saw an increase as well at 1.6% making it $811.70 an ounce, hitting a two-year high earlier this year at $813.70.