Investors will be cautious being caught long above $1,800, even if the dollar retraces and bullion prices rise, analyst says
Bengaluru — Gold edged higher on Monday as some investors bought the metal after a steep price drop in the previous session, though caution set in before a key US Federal Reserve meeting after data showed inflation quickened.
“Gold investors will be much more cautious being caught long above $1,800 now, even if the dollar retraces and gold prices rise,” said Jeffrey Halley, Oanda senior market analyst for Asia Pacific. Data released on Friday shows the jury is still out on the Fed’s view that inflation is transitory and should moderate with time, with the personal consumption expenditures price index advancing last month.“Though they might raise the amount of monthly taper targets, they are likely to say quite strongly that no interest rate hikes are imminent. But none of this will be good news for gold as this should still drive the dollar and yields higher,” Halley said.
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