Gold to shine amid US-China tensions, global efforts to ramp up inflation
Bart Melek, Head of Commodity Strategy at TD Securities (TDS), said in the latest client note, gold prices will eventually turn out a winner, in the wake of the US-China tensions and global efforts to drive inflation higher.
Key quotes: “I think the potential for a new trade war with China could be a trigger for new gold buying. Gold prices will continue to be caught in a tug-of-war between deflation and inflation. The global economy continues to face deflationary threats as the world adjusts to lower growth expectations as the COVID-19 pandemic has decimated the global economy."
Gold Price Analysis: XAU/USD bulls attack 50-hour SMA hurdle
Gold has risen to the 50-hour simple moving average hurdle (SMA) hurdle but remains trapped within Wednesday's trading range. At press time, the key average is located at $1,714. The yellow metal is up 0.30% on the day, having charted an indecisive Doji candle on Wednesday.
A convincing move above the Doji candle's high of $1,716 would validate the seller exhaustion signaled by that candlestick pattern and likely draw stronger bids, yielding a rally to the 10-day SMA, currently located at $1,728.
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