Bullish trend in gold prices remains solid

Hedge funds continue investing in gold for seven weeks in a row, according to the latest trading data from the Commodity Futures Trading Commission. Analysts suggest that the gold market remains in a favorable position because of changing expectations on U.S. interest rates, which cause the dollar’s weakening.

Sean Lusk, co-director of commercial hedging at Walsh Trading, recently had an interview with Kitco News, in which he expressed his views on the situation in the U.S. economy and the gold market. According to him, the circumstances are such that serious obstacles are being created for the U.S. economy. This may have an impact on the Fed's monetary policy and support the price of gold.

Ole Hansen, head of commodity strategy at Saxo Bank, also spoke out on the matter. He noted that gold has risen about $320 from its November lows, while corrections are getting smaller, and any pullback attracts buyers as an opportunity to make money or participate. He thinks gold will still have to face an even bigger pullback one day, but for now, the uptrend remains solid, with key support at below $1,895.

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