Gold on track to record its best 8-year series

05.07.2019 / 10:14

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Gold continues to record profitable sessions and is about to record its longest since 2011. Growth in price is supported by investors' expectations for today's NFP report, which can give more clarity about the Fed's policy.

Investors are betting at the moment that the Fed will take a loosening of monetary policy because of the weakening of the US economy. Expectations are that today's NFP report will show that there has been an increase of 160,000 in June from the previous 75,000. The data will need to literally "break" expectations to follow a sharp shift in expectations for the next Fed's move, interest rates this month.

Gold is currently trading around its six-year high as a result of dovish central bank policies, and geopolitical risks also support demand. The veteran investor, Mark Mobius, said gold could reach $ 1,500 an ounce, taking as a factor low interest rates, given the other supporting elements.

Source: Bloomberg Finance L.P.

Graphs: Used with permission of Bloomberg Finance L.P.

Trader Martin Nikolov

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Gold on track to record its best 8-year series

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