Will Gold rebound?

According to the World Gold Council (WGC), the strength of the US dollar has been the main driver of gold’s performance this year. Also both the ECB and the BOJ have delayed interest rate hikes. This has caused interest rate differentials between the US and ECB and Japan to be larger than normal.  Higher interest rates in the US attracts investors to US investments which increases demand for US dollars.

In the daily gold chart below, while gold has been in a downtrend, from about July to August, 2018 downward price momentum has slowed at a decreasing rate. This could mean that price is near the bottom.

For investors in physical gold, now could be a good buying opportunity.

The weekly gold chart below shows that there is good price support between $1,180 and $1,220.

The US Dollar index has good support between $88 – $90 and resistance between $96 – $98.

See price chart below.