Gold has not been acting like a proper safe haven due to the fact that a full-blown trade war has not yet been triggered, but this may change once tariffs are implemented, said Gary Wagner, editor of theGoldForecast.com.
“We are in a trade dispute, we haven’t morphed into a full-blown trade war. Once tariffs are actually imposed, that will be a different story, and we might see some fireworks at that point,” Wagner told Kitco News.
Wagner noted that should gold fall below $1,240 an ounce, a level $30 lower should be expected.
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Gold prices spiked Friday as all eyes were on Fed chair Janet Yellen and European Central Bank president Mario Draghi’s speeches at this year’s Jackson Hole symposium in Wyoming. The metal traded in the green, last at $1,295.90 an ounce. However, one gold expert is still waiting for the metal to close above key resistance before he becomes ultra-bullish. ‘I’d feel more comfortably bullish when we have effective closes above 1300,’ Gary Wagner, editor of thegoldforecast.com, told Kitco News during Draghi’s remarks. ‘We’ve certainly tested the waters, now we simply need to see the market have the momentum to close above that. Once that happens, I absolutely believe we’re headed substantially higher.’ Commenting on the central bankers’ meeting, Wagner said he didn’t make much of Yellen’s...
Gold prices managed to move into positive territory Wednesday afternoon following the U.S. Federal Reserve's July meeting, which had a dovish tone. December gold rose $3.20 to settle at $1,282.90 an ounce. The rally comes after the metal came close to hitting the key psychological level of $1,300 last. ‘The minutes were extremely dovish...
it now seems highly unlikely we will see a rate hike this year,’ Gary Wagner, editor of The Gold Forecast, said in an interview with Kitco News. ‘The Fed minutes are more of a long-standing market mover, it is not just a flash-in-pan and we should see gold stabilize,’...
After a relatively muted summer, gold is now ending the week 2% higher. Gold was last quoted up $10.10 at $1255.40 an ounce, its highest level since June 26.
"We definitely hit a bottom last week...I still think we have higher to go," said Gary Wagner of thegoldforecast.com. '
“With the fundamental events in the marketplace now, we could see a break above $1,300 now,” he added. "A break above $1273 would signal the proper momentum to get back to this level."
However, equities in the short-term have definitely outshined the yellow metal. Since last year's Brexit vote, a portfolio with only 5% exposure in gold is up 32%, beating a 50% exposure which is up 17%, according to data analyzed by U.K.-based media outlet The Telegraph.