Gold prices have held above $1800 per ounce but the base metals are under pressure.XM Australia’s CEO Peter McGuire said gold is trading strongly considering the US dollar index is approaching that 92.7 handle.
“Gold market seems to be the star of the month, it has been fairly one-way traffic. A lot of smart money is moving into the asset class of precious metals,” McGuire told CNBC-TV18, adding that up until Christmas it could be stronger than where it is at the moment.
Speaking about the gold price trend going forward, he said he was worried about inflation numbers and lockdowns if they are reintroduced across Europe and America. Therefore, those moving parts need to be considered, he added. “I think gold will be around the $1850-1900 per ounce handle. I also think the dollar will trade higher from where it is at the moment,” McGuire said, adding that the US dollar index may see 90-93 handle.For the full interview, watch the video