Gold’s next higher estimate is $1,600 an ounce, according to analysts. They are confident that the gold rally is not over because of unresolved U.S.-China trade talks. Other factors contributing to the rise in gold price are weak global growth and dovish (dovish is used to describe politicians or governments who are in favour of using peaceful and diplomatic methods to achieve something, rather than using force and violence) Federal Reserve expectations. Gold prices made a strong growth on Tuesday, rising above $1,540 an ounce after erasing all daily losses from earlier in the session. December Comex gold futures were last at $1,535.40, up 0.25% on the day.
Traders carefully thought about Trump's speech to the United Nations in New York on Tuesday afternoon. Trump said, “the future does not belong to globalists, the future belongs to patriots.” It appeared that gold improved from these comments, as China and Iran prices began to rise during the speech. It appears that Trump's words toward China and Iran encouraged a sell-off in the US stock market, US dollar index and crude oil. There was also buying interest in safe-haven gold. "Safe haven currencies" are ones investors tend to buy and hold during periods of uncertainty because they are perceived to be less risky and often appreciate in such conditions. Safe haven currencies usually have economic growth and liquidity (how easy the currency is to buy or sell). For years, gold has been considered a store of value. As a physical commodity, it cannot be printed like money, and its value is not impacted by interest rate decisions made by a government. The US dollar is seen as one of the most secure currencies in the world. The US dollar is the standard against which all other currencies are measured. Foreign institutions and governments have massive reserves of US dollars because it's seen as the most secure investment should all other investments fail. The Swiss franc and Singapore dollar are also considered very stable.
The next important level gold could hit is $1,600 an ounce, according to TD Securities and Scotiabank. After a temporary short-term pause, gold will likely go higher again, which is why gold (Au - chemical element, a dense lustrous yellow precious metal of Group 11 (Ib), Period 6, of the periodic table) still should be bought, TD Securities head of global strategy Bart Melek wrote on Monday.