Analyst Bill Baruch said that gold will trade more than $1,138.70 an ounce - Video
Gold prices are sharply higher and trading close to a five-week high on Thursday but the metal must to keep the momentum.
Market strategist Bill Baruch said that the minutes from Wednesday’s FOMC is the key catalyst behind gold’s run. ‘Fed officials in July agreed that conditions to warrant a rate hike were not yet met,’ he said. - ‘They expressed concern over lagging inflation and a weak global economy highlighted by a continued decline in crude oil and slow growth in China.’
Analyst thinks that gold must stay above $1,138.70 an ounce, which represents the market’s 50-day moving average, to maintain the current drive.
Thursday’s existing home sales and Philly Fed data beat expectations. July existing home sales rose by 2% in July and the Philly Fed Manufacturing Index rose to 8.3 in August. 'This might give gold a little headwind -- stalling it at the $1,149.00 level,’ - he said. And he was right - now gold trades near $1,161 an ounce.
