Gold rally to continue

Open demo account
FOREX trading implies serious risk and can result in the loss of your invested capital

Financial and commodity markets analytics

The Gold price has climbed for a 4th straight day today, taking the total gains this year to 7 percent and some believe there is still some more steam left in the rally.

Just seven weeks ago, investors were exiting the gold price in droves but now the momentum seems to have shifted as investors start to doubt the recovery of the US economy.

The next target for the precious metal is $1250, which may arise due to lack of action from the US Federal Reserve on the question of interest rates with some predicting they will be on hold for the foreseeable future.

“Fundamentals are still the same and we think that any pullback could be an opportunity to get back in, if you have missed the move,” said Naeem Aslam, chief market analyst at ThinkMarkets.

 “We still maintain our target of $1,250 for gold, because the Federal Reserve may not be able to increase the interest rate next month,” he added.

Another round of events in the coming months, which may be supportive to gold, is the presidential elections in Europe beginning with the Netherlands in March, followed by France in April.

Both candidates (Geert Wilder and Marine Le Pen) are hoping to build on the success of Donald Trump by sweeping to power on the back of anti-immigration and anti EU sentiment, that is circling the European continent.

Some of Trump’s policies have also started to fall off the rails early into his first term, which is also likely to underpin the precious metal

“The dovish rhetoric from Mr. Trump would keep the pressure on the dollar, which will help gold to regain its mojo,” Aslam added.

“Moreover, French and German elections are going to produce a lot of tailwinds for the gold rally. The demand out of China and India for physical metal is still strong, so why sell gold?”

The material published in on this page is produced by the FIBO group companies, and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Fibo Markets

FIBO Markets Ltd. (ex. FIBO Group Holdings Ltd.) is authorized and regulated by the CySEC (licence no. 118/10) and operates in accordance with the Markets in Financial Instruments Directive (MiFID) of the European Union.

Unfortunately, our services are not available to individuals residing in Canada, the United States of America, North Korea, Iran, Iraq, Israel, Australia, Belgium, or Japan.

29 Agias Zonis, 1st Floor, 3027, Limassol, Cyprus

© 1998—2023 FIBO Markets Ltd. (ex. FIBO Group Holdings Ltd.)

IMPORTANT: Please be informed, that our services are available for Professional Clients only. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Please note that our services are provided only to the residents of the following counties (in alphabetical order): Austria, Bulgaria, British Virgin Islands, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Kazakhstan, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Oman, People's Republic of China, Poland, Portugal, Romania, Russia, Slovakia,Slovenia, Spain, Sweden, Ukraine, United Arab Emirates.

Please feel free to contact out Support in order to get further assistance.