Gold prices continue a decisive rally on its fifth consecutive day on Wednesday, signaling a new high for the haven metal since May 2013. Analysts believe that investors are losing a little bit of interest in equities and finding more security in haven assets like gold and Treasury.
“I believe retail investors are pouring into equities, while institutional investors are a little more cautious and seeking safe haven exposure,” said Jeff Wright, executive vice president of GoldMining Inc.
April gold GCJ20, +0.52% rose $8.20, or 0.5%, to settle at $1,611.80 an ounce, ahead of the release of minutes from the Federal Reserve’s January meeting.
“Gold is finding buoyancy from increased risk aversion, as also reflected in falling stock markets and declining bond yields. The gold price is continuing to defy the firm U.S. dollar, which on a trade-weighted basis is priced at a 4½-month high,” said Carsten Fritsch, an analyst at Commerzbank, in a note on Tuesday.
Other analysts also foresee that gold prices have not yet reached their peak and could possibly move the price higher.
In an interview with MarketWatch, Peter Spina, president and chief executive of GoldSeek.com, said: “There is a good set-up for gold going into this and next week on the $1,600+ breakout and swing point.” With the price that it is right now, it is also possible that the price could move much higher, “with $1700 to $1900 coming in play over the coming months,” he added.
