Gold takes a sharp turn to the south on wavering rate sentiment
Saxo Bank’s Ole Hansen thinks a short-term consolidation might be in the works
(USAGOLD – 4/19/2024) – Gold took a sharp turn to the south this morning in what looks to be a general commodities sell-off driven by wavering sentiment on inflation and rates. It is down $34 at $1973. Silver is down 52¢ at $24.77. Persistently high inflation readings globally, this morning’s UK inflation report being the latest example, are fueling a perception that central banks will be forced to keep rates high for some time to come.
Saxo Bank’s Ole Hansen maintains a bullish outlook for gold and silver but thinks a short-term consolidation might be in the works. “Gold,” he says in an analysis released this morning, “reached a fresh cycle high last week at $2048/oz, coming within just 22 dollars of the 2022 record peak. Silver experiencing a 31% rally since early March, reached a one-year high above $26/oz before encountering profit-taking. After such strong gains, both metals are in need of consolidating their gains, especially after relative strength indicators began flashing overbought in both metals.”
