Gold Bounces, Analysts Expect Prices To Bottom Out Soon

Gold Bounces, Analysts Expect Prices To Bottom Out Soon

SPDR Gold Trust (ETF) (NYSEARCA:GLD) prices headed north as the U.S. Dollar (CURRENCY:USD) sunk further against the yen today. A lack of clarity over a possible June rate hike by the Federal Reserve may be pushing the yellow metal higher.

Gold could fall to $1,130-$1,140 range

Gold trading was muted yesterday after a series of positive data was reported in the U.S. that helped the dollar gain momentum. Gold Futures for August delivery were up 0.26% to 1,217.85 in the pre-market.

According to INTLFC Stone analyst Edward Meir, gold could be near bottoming out based on expectations that the Federal Reserve will hike rates in June rather than July. However, ADP private employment data due today and non-farm payrolls data are scheduled to come later this week and will provide more clarity. Jiang Shu, chief analyst at Shandong Gold Group, said that gold could make a new bottom at $1,130-$1,140 over the next one and a half months. Analysts are skeptical if gold will be able to retain its first-half year performance going forward.

Conclusion of public comment for EIS

In miners, NovaGold Resources Inc. (NYSEMKT:NG) alerted shareholders about the successful completion of a public comment period for the Donlin Gold draft Environmental Impact Statement (EIS). NovaGold’s President and CEO Greg Lang, said that the completion of EIS marks a key milestone for them as they are on track to take Donlin Gold up the value chain, which will benefit all stakeholders.

Royal Gold, Inc (NASDAQ:RGLD) announced that it will host an Investor Day Presentations webcast on coming Friday, June 3. The company’s President and CEO Tony Jensen will be among key speakers. The event will be made available to the company’s investors.