Gold Firm At $1,340/oz After 5 Days of Gains – Fed Takes It To 3 Month High

Gold has moved marginally higher again today after 5 days of gains and remains firm near a three month high at $1,340/oz.

Gold is being supported by the dovish comments from the Fed which have lifted expectations of an interest cut. The U.S. economy is slowing and this is putting the dollar under pressure as it hit a multi-week low yesterday.

Federal Reserve Chairman Jerome Powell comments yesterday that the Fed would act “as appropriate” in the face of trade war risks is positive for gold.

The monetary backdrop is now bullish for gold and we should see further gains and gold breaking higher above its long term range between $1,050 and $1,400 per ounce.

Trade wars and the uncertain geopolitical outlook are impacting the U.S. economy and the global economy and other fiat currencies are vulnerable and will also weaken against gold.

Gold is moving higher in other fiat currencies again.

LBMA Gold Prices (USD, GBP & EUR – AM/ PM Fix)
04-Jun-19  1323.60 1324.25, 1045.51 1043.77 & 1177.47 1177.26
03-Jun-19  1313.95 1317.10, 1039.47 1042.35 & 1175.99 1175.38
30-May-19 1276.45 1280.95, 1010.44 1015.92 & 1146.25 1151.70
29-May-19 1283.50 1281.65, 1016.02 1013.27 & 1151.04 1150.67
28-May-19 1283.90 1278.30, 1012.87 1008.20 & 1146.91 1142.29
27-May-19 Closed for UK Holiday
24-May-19 1281.50 1282.50, 1011.36 1011.89 & 1145.92 1145.40
23-May-19 1275.95 1283.65, 1009.79 1015.37 & 1146.19 1152.46

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