Friday, 19 May 2017 15:00

Gold May Test Upper Limit Next Week

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Gold ends it session at USD $1255.75 on Friday amid a relatively quiet week for global economic news. The driving force behind gold remains in the market throughout the week and we may see more uptrend for gold in the following weeks. Silver trades at USD$16.80 per oz, a great bargain commodity for bullion investors.

Gold prices gained upside momentum due to weak US dollar and US political risks. Investors expect bullish gold market in the near term and hold steady with Fed’s June rate decision. We find that the bullish momentum out-weighted the Federal Reserve monetary policy minutes, hence the uptrend prediction in gold prices dominated the week and near term momentum.

In the foreign exchange market, CAD gained solid grounds this week and trades at 1.351 against USD. Technically, we may see lower USD next week as suggested by technical indicators. We expect USDCAD to bottom out at 1.347 in the near term.  

 

Watchlist

  • US Federal Reserve minutes
  • US President Donald Trump political risks
  • US fiscal stimulus and tax reform
  • Gold Moving-average technical chart
Read 1203 times Last modified on Friday, 19 May 2017 15:05
Bill H

Trader of Suncorp Gold Inc.

Tel: 604-273-9700

E-mail: bill@suncorpgold.com

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