NEW YORK (Scrap Register): Gold could face headwinds in the short term if a “risk-on” mentality sweeps across global markets, but the metal “has nothing to worry about in the longer term given the unfavorable market conditions and geopolitical risks bubbling in the background,” says Lukman Otunuga, research analyst at FXTM.
With concerns over slowing global growth on the mind of many investors, Brexit drama, China slowdown fears and many other negative themes floating in the air, gold bulls are safe.
A primary driver that will heavily support the precious metal this year will be expectations over the Fed taking a break on U.S. rate hikes.
The analyst says the picture for gold remains bullish on the daily charts due to consistently higher highs and higher lows.
“If $1,308 proves to be a reliable support level, then prices could challenge $1,320,” Otunuga added.