Gold continues to capture hearts and minds as investors’ buying in a ‘flight to safety’ has carried the gold spot price through the $2,500/oz marker for the first time.
Market commentators and analysts are citing the continued geopolitical unrest and US dollar strength, which has weakened slightly in the last week as expectations of a cut in the US interest rate is looking more likely from the Federal Reserve in September.
According to commentators, it’s not only a gold rush. Industrial metals have also seen a resurgence, looking to recover from an oversold position earlier in the year, albeit tempered by the wait for more positive news from China. Any sign of better domestic growth figures could sustain copper, nickel and zinc beyond current prices.
Gold continues to rally as it has done since 12 April when its price had already sustained 100 consecutive days closing above $2,000/oz. This prompted market analysts to shift longer-term forecasts to levels of between $2,100/oz – $2,400/oz according to the LBMA (“London Bullion Market Association”) which have been exceeded already by the recent high.
All eyes will be on the US Federal Reserve Chairman’s delivery to the market at the Kansas City Federal Reserve’s annual economic symposium in Jackson Hole, Wyoming on Friday 23 August, when he is next expected to deliver remarks on the overall economic outlook.
With interest rate traders looking for US interest rate futures 100 basis points lower, gold remains in vogue, along with other key metals.