FXTM: Gold ‘Incredibly Bullish’ As Dollar Faces Headwinds
Allen Sykora Allen Sykora
Tuesday December 04, 2018 08:14
Kitco News
Gold has entered December on an “incredibly bullish note” as prices have climbed to their highest level in more than a month, says Lukman Otunuga, research analyst at FXTM. Spot metal was up $10 to $1,240.60 an ounce as 9:56 a.m. EST. “With the dollar facing multiple headwinds in the form of falling U.S. Treasury yields and a Fed that seems to be adopting a dovish tone, this is all good news for zero-yielding gold,” Otunuga says. “Today’s aggressive appreciation continues to highlight how the yellow metal remains primarily influenced by the dollar’s performance.” On the technical charts, the market has consistently higher highs and higher lows, which the analyst describes as bullish. “A solid breakout above the $1,240 resistance level may open a path towards $1,248,” Otunuga concludes.
By Allen Sykora of Kitco News; asykora@kitco.com