The gold price was steady during Friday’s morning sessions, although a decisive break above the psychologically important $1,200 level remains out of reach. Still, analysts say, that the yellow metal could well move higher in today’s sessions.
Spot gold was last at $1,193.90/1,194.70 per ounce, a $1 increase on the previous day’s close.
“Precious metals are well placed to extend higher, bullion for oversold reasons and the PGMs for oversold and fundamental reasons. The past two Fridays have seen sharp rallies in bullion – we wait to see if the same happens again today,” said FastMarkets analyst William Adams.
“Gold could gravitate towards the $1,200 level for Monday’s COMEX option expiration where there is a decent amount of open interest,” added MKS Capital.
“While the current macro environment of low inflation and a strong US dollar has provided a headwind for bullion, a convincing break above the $1,200 level may invite buying from momentum investors,” said James Steel at HSBC.
Should the gold price continue to trade below this level- which is below the cost of production – then producers may have second thoughts for project expansions, Steel added.
After a busy data session yesterday, when PMI numbers from China and the US disappointed, the schedule is quiet today, with no market-moving numbers scheduled for release.
Silver at $16.26/16.31 was up against the previous close of $16.1.
Platinum was up $10 at $1,215/ 1,220 and palladium increased $5 to $773/779.
“PGM’s had a solid session yesterday, rallying on news that power cuts were still providing an issue for South African miners,” said MKS Capital.
The post Gold price could test $1,200oz, investors look for convincing breakout appeared first on The Bullion Desk.
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