Ongoing consolidation in Gold is healthy - UBS

Omkar Godbole FXStreet Contributor

Gold's ongoing consolidation between the 100- and 50-day moving averages is healthy, as it will ease some of the persistent concerns on positioning and create room for further gains, according to UBS analysts.

Key points

Gold traders should watch out for the US economic data, the US-China trade-related newsflow and the resulting impact on the Federal Reserve's monetary policy.
Uncertainty is likely to persist, forcing the central banks to keep rates low.
Gold can trade through $1,600 in 2020 and $1,550 over the next three months.

The yellow metal is currently trading at $1,460, representing nearly 14% gains on a year-to-date basis, having hit a high of $1,557 on Sept. 4.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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