SaxoTV

Hansen: Gold holds its mettle but be cautious

489 views
January 06, 2015 china, china economy, china growth, china manufacturing, china pmi, chinese economy, commodities, commodities markets, commodity, commodity index, commodity market, commodity markets, commodity outlook, commodity prices, commodity strategy, commodity trade, commodity trading, crude, crude oil, crude oil price, crude oil prices, crude price, crude prices, crudeoil, dollar, dollar growth, dollar index, dollar outlook, dollar strength, energy, energy companies, energy demand, energy efficient, energy industry, energy market, energy prices, energy sector, energy stock prices, energy supply, energysector, gold, gold buy, gold buying, gold commodities, gold commodity, gold confidence, gold demand, gold dollar, gold exchange, gold investing, gold investment, gold levels, gold market, gold predictions, gold price, gold prices, gold resistance, gold spot, gold supply, gold support, gold trade, gold trading, gold trading levels, goldprice, greece, greece bailout, greece crisis, greek, greek crisis, greek election, green investments, greexit, oil, oil drop, oil industry, oil market, oil markets, oil price, oil prices, oil production, oil supplies, oil supply, oil trading, precious, precious metal, precious metal prices, precious metals, precious metals prices, saxo, saxo bank, saxo tv, tradingfloor.com, usd, xaueur
Gold has started the year trading at almost the same level it was this time 12 months ago. Over the same period, the Dollar has risen almost 15%. That should have had a negative impact on precious metals but it hasn't affected gold. 

Saxo's Ole Hansen notes there are other issues that are also adding support to gold. Firstly the Greek political crisis which may continue to hurt the Euro even after the January election. Secondly the weak economic data coming out of China could bring forward some stimulus activity which could also lend support to gold. And thirdly as stocks fall off the back of tumbling energy prices, gold is benefiting.

But Hansen offers caution for the start of 2015 because "the drivers are still stacking up to the negative side". He thinks the upside is limited to 1240/oz. He is though more bullish in the medium-term. He also says traders should keep an eye on Euro Gold - XAUEUR is at its highest since September 2013.