Is gold primed for rally?

Is gold primed for rally?

Gold is primed for a turnaround and could be ready to rally past $1,900 an ounce as the sentiment in the bullion market has reached its “maximum disdain,” precious metal analysts said.

Since the outlook for gold price is positive, any dip in gold price should be seen as a buying opportunity, they said.

What will trigger the gold price rally in the near term? Analysts are of the view that a slide in the dollar index will trigger the rally. Euro and pound constitute around 70 per cent of the dollar index. The Bank of England has recently announced a 25 bps interest rate hike whereas the European Central Bank is also hawkish on interest rate hike. This has led to sharp upside movement in euro and pound leading to slide in dollar index.

After a year of consolidation, gold has formed a solid price bottom at around $1,700 an ounce. As the Federal Reserve gears up to raise rates and reduce liquidity, the precious metal is a potential top performer this year, said Bloomberg Intelligence senior commodity strategist Mike McGlone.

“The elongated stock-market rally, recent commodity bounce and competition from Bitcoin may have pushed the metal close to maximum disdain, solidifying gold’s