Apr 19, 2018 Guest(s): Jonathan Butler Mitsubishi Corporation
One analyst was surprised that spot gold didn't push higher above its $1,365 an ounce peak a few weeks ago, given heightened geopolitical risks and the prospect of a trade war still looming on investors' minds.
Gold rallied in early April, testing $1,360 an ounce, which is a key resistance level for many analysts, but lost momentum shortly after.
"We were surprised that gold didn't rally a bit stronger, given all the geopolitical uncertainty surrounding Syria, Russia, on top of all the concerns about trade wars with China," Jonathan Butler, precious metals strategist at Mitsubishi Corporation, told Kitco News on the sidelines of the IPMI Precious Metals Mobility Symposium. "In all of these times, gold can act as a safe haven."
Butler added that in order for gold to push higher, there needs to be a more serious escalation of conflict beyond merely a "war of words."
"We're now entering a time where gold demand is getting a little stronger, especially from key Asian markets, so the timing of that together with these geopolitical concerns might bring some further upside from here, we believe," he said.