Gold’s rally comes after Chairman Jerome Powell said last week the Federal Reserve would “act as appropriate” to keep the current economic expansion going, which upped the odds of the Fed cutting rates in July. Gold — seen as a global safe haven — also reacted positively to increasing geopolitical uncertainty after President Donald Trump signed new sanctions on Iran on Monday, days after Iran shot down a U.S. drone.
David Sneddon, global head of technical analysis at Credit Suisse, told clients this week that gold could retest a $1,921 record high with a “significant and long-lasting rally.” Morgan Stanley commodity strategist, Susan Bates, said gold is the firm’s No. 1 commodity pick thanks to uncertain macroeconomic outlook, falling rates and a bearish U.S. dollar outlook.
