Source : Flickr/Tim Olson
Although gold drifted earlier last month due to lower than expected US retail sales, on Friday, it gained value for third straight session for the first time in nearly a month.
On Friday, gold rise 0.3 percent and settled at $1,227.70 per ounce as it finished the week 0.1 percent higher after losses from previous two weeks.
Analysts have said that the prices of gold rose from the increased domestic sales which surpassed the expectations and understandably, the core consumer price index rose by 0.1 Percent earlier last month.
Despite the gains, the valuable metal is still suffering and we’ll have to wait to understand completely how much of an impact it has in the coming months. Talking about the recent rise, Tyler Richey, co-editor of the Sevens Report said, “Gold remains significantly lower than the 2017 highs after a two-week selloff saw futures fall $80 [an ounce] peak to trough.”
“Very near term, if volatility remains even slightly elevated and interest rates come back in or at least stay flat, gold will likely trend sideways. Longer term, the 2017 uptrend remains intact as long as the $1,200 area holds, but the strength of the trend is much weaker than it was this time last month.”