With weak US economic data, ongoing Greek debt issues and tensions in the Middle East gold is certainly benefiting from its safe-haven status
Bullion.Directory precious metals analysis 03 May, 2015
By Harley Salt
Co-founder, Director of Sales Trading at Bullion Index
As I have been pointing out for some time now, the data coming out of the US is showing a trend of coming in below expectations, Tuesday’s consumer confidence just adds to that trend.
It leads me to believe that the Fed will hold off on raising rates until 2016, it certainly will not want to tighten too early given the current fragility of the US economy.
Later today the Fed will release a statement following its meeting, investors will be looking for any signs as to when the Fed will begin to raise rates, I am not expecting to see anything that will move the markets in this statement.
The US dollar continues to be sold off against other major currency pairs, with some of that money finding its way into gold. There are a lot of reasons investors would want to own gold as part of their portfolio at the moment.
The next key level for gold is US$1,220/oz, a level gold previously struggled to hold above.
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