gold price prediction today May Have Found Value, But Needs Catalyst to Drive It Higher

gold price prediction today May Have Found Value, But Needs Catalyst to Drive It Higher

gold price prediction today May Have Found Value, But Needs Catalyst to Drive It Higher

gold price prediction today nudged higher last week after investors found support slightly above a key technical retracement area. There wasn’t a very bullish event that drew the eye , nonetheless, the market rallied from earlier weakness anyway. we will only speculate on what fundamental event brought buyers back to the market. From a technical standpoint, buyers were likely interested in value after the market posted volatile price swings the previous week

Last week, February Comex gold settled at $1560.30, up $0.20 or +0.01%

Most of the news last week was U.S. Dollar friendly, which tends to weigh down demand for dollar-denominated gold. U.S. Treasury yields rose and therefore the major stock indexes hit record highs several times. All of those events tend to stay a lid on gold prices or maybe drive them lower

Geopolitical Events
gold price prediction today President Trump signed a “phase one” trade agreement with China because the world’s two biggest economies attempt to rein during a more that 18-month trade war. The deal includes provisions to uproot property theft and made technology transfers and increase Chinese purchases of U.S. goods, though it leaves open questions on enforcement. The Trump administration aims to start out negotiating subsequent piece of the trade agreement before the November 2020 election

China said Friday its economy grew by 6.1% in 2019, meeting expectations even amid a trade dispute with the us . Analysts polled by Reuters had expected China’s economy to possess grown 6.1% in 2019, compared with 6.6% in 2018. Still, China’s GDP growth last year was the slowest since 1990, consistent with Reuters records

U.S. Economic News
gold price prediction today Strong economic data lifted investor sentiment and therefore the U.S. Dollar last week. Weekly jobless claims unexpectedly dropped by 10,000 to 204,000. Economists polled by Reuters expected a print of 216,000. Meanwhile, retail sales climbed by 0.3% in December, matching expectations. The Philadelphia Federal Reserve System index also jumped to 17 in January from 2.4 in December

Consumer prices rose slightly but expected in December and monthly underlying inflation pressures retreated, which could allow the Federal Reserve System to stay interest rates unchanged throughout this year

The U.S. Department of Labor also reported its producer price level for final demand ticked up 0.1% last month after being unchanged in November
gold price prediction today Finally, U.S. housing starts soared nearly 17% in December to a 13-year high, consistent with a Friday release from the Bureau of the Census

Weekly Forecast

Gold came in weaker last week on Monday and Tuesday, but prices firmed on Wednesday, Thursday and Friday. On Wednesday, the U.S. and China signed their trade deal. Perhaps gold investors are betting that the deal will fail over the long-run because it can’t be policed, leaving open the likelihood that China will renege its end of the discount at a while within the future
gold price prediction today Perhaps gold investors are depending on a stock exchange crash. Despite the market sitting at a record high, many experts are starting to question valuation. this might mean a near-term correction is within the cards

Maybe gold investors found value. Remember that gold was trending higher throughout December before prices went into hyper-drive after a U.S. rocket attack killed a high ranking Iranian military official and Iran retaliated with a missile attack
gold price prediction today On January 2, at some point before the U.S. attack, gold settled at $1528.10. Technically, a serious valuation zone comes in at $1533.20 to $1514.30. Last week’s low was $1536.40

Perhaps buyers saw value at $1536.40, slightly above $1533.20 and $1528.10

Like I said earlier, it’s all speculation why gold rallied late last week. But confine mind, it didn’t really remove any significant tops so gains were essentially capped

If the U.S. Dollar were to suddenly weaken or stocks were hit hard by a correction, I can see gold jumping to a minimum of $1574.90 to $1583.90
gold price prediction today We might not know why gold buyers came in, but I’m not convinced it'll move much higher unless there's a serious catalyst to drive prices up