Gold gains momentum as investors take shelter

As we mentioned several times, geopolitical tensions were very calm this summer and investors were dropping gold which was very close to $1200 an ounce. Anyway, mounting tensions between North Korea and the US has shifted the short-term outlook for the precious metal which is now monitoring its 2017 high slightly below $1300.

Against this backdrop, there are also concerns that the Fed won’t likely deliver new rate hikes before year-end. On top of that the Trump’s inability to deliver its key reforms has send the dollar way lower. We believe that the dollar weakness is set to continue and will boost gold prices way higher.

Stay on top of the markets with Swissquote’s News & Analysis

Investors’ sentiment is now shifting towards risk-off. The VIX index, which indicates how investors value market risks has jumped towards 16 after hitting its all-time low below 10 last week. The equity markets seems vulnerable and gold is ready for a bullish breakout. Time is good to stash up a bit more of the yellow metal.

This report has been prepared by AC Markets and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by AC Markets personnel at any given time. ACM is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.