Gold News

Gold Prices to rise again after 'temporary' dollar rebound

A prominent analyst claimed today (October 28th) that any lull in Gold Prices in the near future will simply be a precursor to further gains, Reuters reports.

The yellow metal is currently trading at three-week lows near $1,040 per ounce as the dollar - which tends to move in the opposite direction - enjoys a mini-rally.

However, David Barclay, a Hong-Kong-based commodity strategist at Standard Chartered, explained that the outlook is still gloomy for the greenback in the medium term.

"I think the negative correlation [between gold and the dollar] will continue," he told the news provider.

"There is the potential for a short period of dollar strength and subsequent consolidation for gold, but this will be temporary as we see the euro/dollar at $1.55 by year-end."

A similarly optimistic summation was provided last week by Adrian Koh, an analyst at Phillip Futures, which is one of the top local brokerages in Singapore.

He explained that the fundamental weakness in the dollar at present should ensure that Gold Prices retest their all-time high of $1,072 per ounce, which was achieved on October 14th.

"From a technical perspective, it looks like the precious metal is pausing and consolidating after reaching the highs of $1,070 an ounce," he told Reuters.

"And if the general scenario doesn't change, as in a weakening dollar, then we could be in for a test of the record highs again when gold does break higher."

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