Gold’s move above $1,800 repairs a lot of damage, momentum points to higher prices – analysts – by Neils Christensen (Kitco News – May 06, 2021)

https://www.kitco.com/

(Kitco News) – Gold investors can finally breathe a sigh of relief as prices have broken resistance at $1,800 an ounce and some analysts see the potential for higher prices. June gold futures last traded at $1,815.80 an ounce, up 1.77% on the day.

According to analysts, growing inflation concerns pushing real bond yields to their lowest point since mid-February has ignited a spark in the gold market.

Bark Melek, head of commodity strategy at TD Securities, noted that because of rising inflation pressures, the 10-year breakeven rate rates higher, which is also taking its toll on the U.S. dollar.

He added that rising inflation helped push gold prices above $1,800 an ounce. That initiated some technical buying as buy stops and sell stops were triggered.

Although gold has made a solid move above a vital resistance point, Melek said that more work has to be done to sustain the new momentum. “In this environment, we are never completely out of the woods, but we are setting up for a nice little rally as momentum picks up,” he said.

For the rest of this article: https://www.kitco.com/news/2021-05-06/Gold-s-move-above-1-800-repairs-a-lot-of-damage-momentum-points-to-higher-prices-analysts.html

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