The Gold price has climbed for a 4th straight day today, taking the total gains this year to 7 percent and some believe there is still some more steam left in the rally.
Just seven weeks ago, investors were exiting the gold price in droves but now the momentum seems to have shifted as investors start to doubt the recovery of the US economy.
The next target for the precious metal is $1250, which may arise due to lack of action from the US Federal Reserve on the question of interest rates with some predicting they will be on hold for the foreseeable future.
“Fundamentals are still the same and we think that any pullback could be an opportunity to get back in, if you have missed the move,” said Naeem Aslam, chief market analyst at ThinkMarkets.
“We still maintain our target of $1,250 for gold, because the Federal Reserve may not be able to increase the interest rate next month,” he added.
Some of Trump’s policies have also started to fall off the rails early into his first term, which is also likely to underpin the precious metal
“The dovish rhetoric from Mr. Trump would keep the pressure on the dollar, which will help gold to regain its mojo,” Aslam added. “Moreover, French and German elections are going to produce a lot of tailwinds for the gold rally. The demand out of China and India for physical metal is still strong, so why sell gold?”