Gold Watch
Gold prices traded last week in a range of $27.36 an ounce, pressured by a shift to risk assets as US stocks reached new highs before the equity rally cooled on Friday. Gold gained from safe-haven demand amid uncertainty about European politics and the policies of US President Donald Trump. While investors are cheering Mr Trump’s promises of tax reform, they are uneasy about a possible erosion of the Federal Reserve’s independence as the House Financial Services Committee signals a desire to reform regulations governing the central bank. Investors have poured $3.1 billion into gold funds so far this year. The afternoon fixing on Friday in London was $1,241.95, compared with $1,228.30 a week earlier.
If gold cannot break out above the resistance at $1,255, selling to take profit could push the price down to $1,228 or $1,216. Investors with high risk tolerance could consider buying if the price approaches $1,255 in anticipation of a breakout. More risk-averse investors might buy for speculation if the price can stay above $1,228 and $1,216. But proceed with care and keep a short-term focus.