Based on technical analysis by Denko Group traders, gold prices will take a break in gains before finding the high water mark.
Last week‘s trend line hold of the triangular consolidation that has been unfolding in the yellow metal over the past few months prompted the move high that was expected; however it seems to be finding the air a little thin above this landmark level as it has done on at least 2 previous occasions.
The key motivators to future gold price rises will be US dollar weakness, a perception about rising inflation, or inflation itself. Seeing as the only driver valid at the moment is US dollar weakness the nature of the rally seems a little unreliable and while we may see $1,040 it would be a surprise for any move to follow through markedly.
The surprising thing about this move is how Gold has moved in step with equity markets, when usually the opposite is true as investors flock to it as a safe haven in times of turmoil.
As a store of value it is of limited worth, adjusted for inflation it should be nearer to $2,000 an ounce than where it is now. Be that as it may while countries around the world are printing money like confetti, and in the process devaluing their currencies, the only real surprise is that it isn‘t higher.
Denko Group is a private equity firm dedicated to providing superior returns on capital. They seek high net return opportunities in all sectors, from high-growth technology and life science companies to recommending competitors funds, while achieving superior returns for investors. They bring together the financial and intellectual capital necessary to create a sharp edge that is focused solely on investor‘s confident assurances of outstanding performance. For more information on the Denko Group please visit their website at denkogroup.com.
You should not do, or refrain from doing, anything based on the information provided in this release without first obtaining professional advice from your financial advisor. Denko Group believes the information in this release is correct, and it has reasonable grounds for any opinion or recommendation found within, as at the date the relevant part of this release was last updated. However, Denko Group and its directors, employees and agents are not liable for any loss or damage incurred by any person as a result of any error in any information, opinion or recommendation in this release. Nothing in this release is, or should be taken as, an offer, invitation or recommendation to buy or sell any investment in or make any deposit with Denko Group or any other person.