Analysts Wait to See If Gold Can Close May at $1,900
Last week showed gold in its glory. The yellow metal and gold stocks climbed higher than analysts’ projected rebound targets at $1,850 and $38. Equally important is that gold has strengthened against other markets.
Gold ended the week at $1,891. Relative to bonds, the precious metal confirmed a major rise to a six-year high. Measured against the stock market, gold also may soon move up from a major low.
Gold stocks staged even more impressive performance. GDX surged to $40 during the week. Analysts predict that the VanEck Vectors Gold Miners (GDX) ETF will set a record sooner than gold will hit a record highs. The GDX to gold ratio approaches eight-year resistance. If it does, all precious metals will be affected significantly. Measured against the stock market, GDX nearly reached a five-month high on Friday.
The yellow metal has weekly and monthly resistance at $1,900. Silver, a current leader among precious metals, has weekly and monthly resistance at $28.50. It ended the week trading below $28.00.
May is coming to an end next Friday. Analysts are waiting to see whether gold can jump higher than the $1,900 level.
