Gold has made 7% gain YTD. But gold price might go down in the short term. However analysts believe the gold is on an upward trajectory now. Gold price always increase when there is more political uncertainty in the world. Global financial markets can’t stomach political turmoil in the world. When levels of political uncertainty rise above a certain threshold, markets become nervous and the investors start running towards gold as a safe haven.
“[Gold] prices did break through its zone of resistance at 1,275 to about 1,300 and now it’s coming back and I think it needs to go through a re-testing process,” said Stovall. “Our belief is that it is on an upward trajectory, but it does have to go through this re-test and we would look to about $1,260 for gold prices to be an important level of consideration.”