Not only did the gold price manage to stay above the $1,300 resistance level last week, but the metal surely and steadily climbed even higher. From Friday, Sept. 1, to Friday, Sept. 8, the price of gold gained 1.6% to $1,351.
Gold was clearly buoyed by the U. S. dollar’s plunge to a nearly three-year low. The U. S. Dollar Index (DXY) – which measures the greenback against other currencies like the yen and the euro – dropped from 92.81 to 91.33 last week. That was the lowest since December 2014.
But North Korea’s testing of a hydrogen bomb – considered the country’s most powerful to date – on Sunday, Sept. 3, sent gold prices higher. On Tuesday, Sept. 5, the price of gold jumped 1.1% to $1,345.
Despite falling since then to $1,339 today (Monday, Sept. 11), gold is now up 16.2% in 2017, easily beating the S&P 500’s 10.9% gain since then.
Some indicators are starting to place the metal in overbought territory. While this could lead to a brief dip, I remain bullish on gold in the medium and longer terms. Today, I’m going to share with you my bullish gold price target for the end of 2017.
First, let’s look at gold’s 1.6% rise last week…
This post was published at Wall Street Examiner on September 11, 2017.