Is his weekly roundup, Pepperstone analyst Chris Weston gives his views on gold, in relationship to risk aversion and hedging in client portfolios. He also expands the topic to include value, not just in dollar (USD) terms, but also in Euro and Sterling highs.
The video includes daily gold charts across a range of currencies – this illustrate the importance of seeing gold price movements in the context or recent currency fluctuations too.
Gold Weekly View – Video
New Highs For Gold
Gold has hit new highs across all major currencies in the last trading week, and this represents a very bullish tone. Impact to markets from things like the coronavirus and a slowing eurozone economy have drawn traders to gold as a hedging tool.
Yield prices and bond / treasuries also point to a strengthening of gold prices, given the correlation and trends.
Chris also highlights some of the February data releases that may impact gold prices further. Key figures from South Korea and Germany may well accelerate the flight of money into safe haven assets such as gold. Further weakening of the Eurozone will also impact gold when priced in Euros.
Data from US and China is also expected to encourage gold buyers.
The video also explains why a strengthening US dollar can also boost gold. 5 year inflation forecasts are a key metric for the Fed, and these are moving into territory where the US rate-setters may take notice.
Other indicators are also pointing to further headroom for gold prices and Chris explains the why’s and how’s. Signs remain bullish for Gold…