2017.04.2508:40:00UTC+00Fxwirepro: Gold Target extended to $1390 Per Troy Ounce

In late March, when the yellow metal was trading at $1246 per troy ounce, we forecasted that the price would jump more than $100 per troy ounce and test resistance around $1365 area. We suspected that the ongoing geopolitical uncertainties would continue to benefit the yellow metal.

Gold is currently trading at $1268 per troy ounce as it is suffering major selloffs after the French election on Sunday, where the pro-European Union candidate Emmanuel Macron came first in the first round of the election. As the polls turned out to be correct, the market is pricing almost 90 percent chance of a Macron presidency in 2017 and that has pushed down the demand for safe haven gold. Despite the selloff, we now expect the yellow metal to test grounds around $1390 per troy ounce area as several geopolitical risks such as the situations in North Korea and Syria are still simmering.