Request for latest house views on Gold Prices and the US Dollar

[Hock Meng]

Dear Analysts

A client of mine would like to request for the latest Phillip Securities house views on the price of gold and the US Dollar. I noted some of the previous reports indicating potential upside for the price of gold, and downside for US Dollar despite the rising US interest rate environment.

May I know if there are any latest updates or additions to these two segments (US Dollar, and the price of gold)?

Thank you.

[Research Department]

Hi Hock Meng,

Thank you for engaging us on Stocksbnb.

Gold: Bullish

We are still bullish on Gold in the near and long-term. Price action wise, Gold seemed to have found a solid bottom around the 1,300 psychological round number. Gold continues to bottom out with the FED rate hike cycle. Please refer to the following link for more information.

https://www.stocksbnb.com/reports/gold-trending-up-with-the-fed-rate-hike/

For a longer-term perspective, Gold needs to close above the 1350 – 1360 neckline on the monthly basis for the next wave of buying to begin.

https://www.stocksbnb.com/reports/gold-long-term-view-justifying-for-an-explosive-move-higher-once-it-clears-above-the-crucial-neckline-at-1350/

Silver looks ready to rebound sharply too with the extreme short positioning in the speculator space.

https://www.stocksbnb.com/reports/silver-waking-up-from-the-slumber/

US Dollar: Bearish

The long-trend of US dollar is still down as the dollar index is currently in the midst of a secular downtrend that began back in January 2017. The next target on the DXY will be the 85 range.

https://internetfileserver.phillip.com.sg/POEMS/Stocks/Research/EconomicPulse/SG/GOLD20170619.pdf

Near-term wise, the DXY has been consolidating between the 90.57 range high and 88.56 range low for the past 11 weeks. We should continue to see the 90.57 – 91.00 range high keeping a lid on the DXY for the next leg lower to begin.

[Hock Meng]

Thank you.

[Hock Meng]

Dear Research

I have a client who posed a follow-up question on the state of the US Dollar.

He is asking whether the current trade policies issued by the Trump Administration that appeared to be forcing its trading partners to buy from US in return for a two-way trade will likely prompt a rise in the US Dollar eventually over an intermediate to long-term basis.

The reason is these trading partners, due to so-called ‘coercion’ by the US government, will eventually need and demand more US Dollars  to buy American goods.

Thank you.

[Author]

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