The gold price remains stable today while trying to rack up its 2nd consecutive day of gains after falling for the previous 3 trading sessions on the back of last week’s interest rate decision from the US Federal Reserve.
At 7.28pm (GMT) gold was trading at $1,137 up from $1,134 in yesterday’s trading.
The precious metal has pretty much been on a down ward spiral for the most part of 4 weeks but some say a temporary bottom may be near and there may be an opportunity in the making,
Gold is “continuing the recovery it began on Friday,” Commerzbank said in a Monday note. “Some market participants may also have been taking advantage of the low price level to buy gold, especially given that gold is oversold from a technical point of view.”
Analysts from HSBC also believe that gold may be headed higher, but they are not ready to call a bottom just yet,
“Should the financial markets consolidate further, gold may have another opportunity to trade higher. Although we are positive longer term on gold, it may be a little early to call the recent sell-off over,” wrote James Steel, chief precious metals analyst at HSBC, in a Friday note.
Not all believe gold is a good buy at this time, such as Analysts from Macquarie bank lead by Matthew Turner who noted that the fundamentals don’t stack up at the moment for the gold price and especially with regards to the level of the US dollar,
"Gold might be on course for its second-worst quarterly performance since 1982, but it remains well above last year’s price low, despite a stronger dollar, high bond yields and ominous signs physical demand is hamstrung. So we ask – why is it so high?"