Gold has managed to pull itself back up above the $1,700 an ounce level on Friday afternoon as U.S. President Donald Trump turned up the geopolitical pressure by threatening new tariffs against China over the coronavirus crisis.
However, for the week, though, gold is down more than 1.5%. Still, analysts are confident that the precious metal will make up the lost ground on increased geopolitical tensions and more bad economic data next week. At the time of writing, June Comex gold futures were trading at $1,706.80, up 0.74% on the day after tumbling below $1,700 an ounce earlier in the session.
The end-of-week move down was driven by “end of month position squaring and USD flows in a low liquidity environment,” TD Securities head of global strategy Bart Melek told Kitco News on Friday.
Many analysts view lower level in gold as only temporary. “There is a lot more upside for gold to make up some of the losses this week. The outlook is still pretty bullish for gold in general. This is just a bump in the road before we see higher prices next week,” Gainesville Coins precious metals expert Everett Millman said on Friday. “My outlook is for gold to go higher.”
Millman is not ruling out seeing $1,800 an ounce level in May. “It wouldn’t take a whole lot to push gold up to $1,800,” he said.