Gold ended the week at $1,286.80 per ounce, closing its fourth consecutive weekly gain.
Dovish comments from the Federal Reserve on January 4 about reduced chances for further rate hikes caused the U.S. dollar to decline. This is another positive factor for gold, which remains bullish.
Technically, the gold spot price broke above its 200-day moving average for the first time in over six months (see the following chart). This significant indicator now becomes a support level going forward.
Many analysts now see an upward move for gold in the coming year. CNBC reports, “Goldman Sachs has found the safe haven gold more attractive after a volatile December. The bank on Thursday raised its gold forecasts to $1,325, $1,375 and $1,425 per troy ounce over the next three, six and 12 months, respectively, from $1,250, $1,300 and $1,350 per troy ounce. Based on gold’s current price, that forecast represents a 10.7 percent increase over the next 12 months.”
Rick Andrews is president of Avant Capital Management