Gold price needs more than geopolitical uncertainty to sustain 2020 rally – Saxo Bank

Once again geopolitical uncertainty has had a short-lived impact on the gold market but that doesn ’t mean investors should give up on the precious metal, according to one market analyst.In a telephone interview with Kitco News, Ole Hansen, head of commodity strategy at Saxo Bank, said that he could see gold prices falling to $1,500 and entering a new consolidation phase as prices have fallen sharply from Wednesday ’s multi-year high above $1,600 an ounce.

“Gold did in the first three days what it was supposed to do through the entire year,” he said. “We have seen this pattern before. While geopolitical uncertainty drives prices higher it doesn ’t lead to sustainable prices. The gold market needs a little bit more if this rally is going to be sustained.”

Hansen ’s comments come as gold prices traded at $1,548.80 an ounce, down nearly 4% from Wednesday ’s high.

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