Gold closed higher Friday (3/8) at $1,297 per ounce, ending in a gain for the week.
Weak U.S. jobs data may be signaling a slowdown in the U.S. economy as employment has been reaching saturation levels. This and the apparent end of the Federal Reserve’s cycle of raising interest rates are pointing to a softening in the U.S. dollar.
This may help explain gold’s breakout from its recent decline, following a third failed challenge to breach the resistance level at $1,420 per ounce (see chart).
Some analysts think this move has a chance to break through the previous resistance.
“So for the $1,500 we’re talking about this year. That’s a bold call because we’ve got to put $220 on the price, and I think we can do it,” E.B. Tucker, director of Metalla Royalty & Streaming, told Kitco News.
Tucker continued, “What’s [gold] telling us now? Is it telling us that stocks are in trouble? Either way, we’re only 5% off the recent high.”
Rick Andrews is president of Avant Capital Management