Gold: Potential consolidation ahead of further gains – UOB

Strategists at UOB Group’s Quarterly Global Outlook noted the ounce troy of the yellow metal could test the $1,800 mark in the not-so-distant horizon.

Key Quotes

“The price actions in spot gold since March have been choppy. However, with monthly ADX rising strongly above the 25 level, spot gold is deemed to be in a long-term up-trend.”

“Overbought shorter-term conditions could lead to a period of consolidation first but spot gold is expected to stage another push higher towards (and possibly above) the 8-year peak of $1,795, likely closer to the end of third quarter.”

“Support is at $1,600 but only an unlikely break of $1,500 would indicate that spot gold has found a top.”