“Global growth has been deteriorating for a while, and now it’s the trade war just speeding the process up,” Baruch said. “If we see progress on the trade war, then the dollar could sell off, and gold lifts higher.”
Baruch also said gold could see levels of $1,484 over the next two months, as the path of least resistance is both technically and fundamentally higher. After that, gold could see some seasonal resistance.
“Looking at the Fed being more dovish than expected in the meeting last week, ultimately that helped lift gold higher, by putting a little bit of pressure on the dollar,” he said.
“The dollar hasn’t really sold off, and one of the reasons why is because there’s a lot of safe-haven tailwinds in the dollar because of the trade war.” “This is a bullish breakout above the five-year trend,” Baruch noted.
“It’s a matter of where we go from here in the sense of holding support, and a more immediate term move higher, or consolidation before moving higher.”
- Source, Kitco News
