From Kitco:
With the U.S. dollar stealing the safe-haven status from gold this summer, a potential “win-win situation” for the precious metal could be just around the corner, according to the ScotiaMocatta bank.
“Gold continues not to attract safe-haven interest, even though parts of the global financial system are stressed. International investors see the U.S. as the go-to destination for safe investments,” ScotiaMocatta’s analysts wrote in their monthly Metal Matters report.
Gold had a very disappointing summer, losing 65% of the 2015-2016 gains, the report said. But, the good news is that a clear price bottom has formed just below the $1,200 an ounce level.
“Up until recently, the downtrend had been relentless since April’s high at $1,365.25/oz failed to overcome the January high at $1,366.15/oz, which formed a double top. Interest in Gold in most areas of demand has been weak… despite numerous escalations in the geopolitical arena, including U.S. trade disputes, some jittery emerging markets and the prospects of deeper U.S. sanctions against Iran, all of which could trigger financial crises,” analysts wrote.
The main driver keeping gold prices down has been the rising U.S. dollar, which received strong support from higher U.S. interest rates and U.S. President Donald Trump’s ‘America First’ policy.
TRADER TALK: All real factors are that #gold is forming a bottom and if a trade must be made here, it should be bought – @Bubba_Trading | t.co/pfUkHHCpf6 pic.twitter.com/E3GnRcHAN5
— Kitco NEWS (@KitcoNewsNOW) September 5, 2018