Geopolitical tensions this week, stimulated the growth of the yellow metal above $ 1,300.
However, whether to continue this “gold rush”?
Mark Newton, chief technical analyst at Greywolf Execution Partners, sure it is. “What happened in the last few days – it is very important,” – he said. “The price of gold has made a break above the downward trend that prevailed throughout the month, so it is rising above $ 1,300 – is very important.”
Traditionally, August is considered to be a good month to buy gold, which, he argues, is starting to look attractive from a technical point of view. “In the past year the price has stabilized,” – he says. “I would advise you to buy gold.”
In fact, Newton owns gold, including the “gold” funds (GLD and IAU), the fund of gold mining companies (GDX) and the foundation of physical silver (SLV).
“In my opinion, it is advantageous to own gold, as evidenced by the short-term and long-term technical analysis and seasonality,” – he said.
Gina Sanchez, founder Chantico Global long time did not attach much importance to gold by “wait and see” attitude towards the metal.
“To buy gold, you must, at a minimum, to believe that the economic recovery has lacked a strong base such as previously thought,” – she said.
Economic data to be released in August, will determine the direction of movement of gold, according to Sanchez.
“We need to see what will happen to the housing market and consumers, as retail sales figures say,” – she explains. “In fact, if there is a tendency to slow down the growth of the economy, gold will be a very profitable asset today.”
However, if the economy shows signs of strong growth and interest rates will be raised – this will play against gold, she said.