FxWirePro: Gold likely to rise to as high as $1280 per troy ounce

After consolidating in a tight range of $1215-$1182, the yellow metal has given a breakout of the range this week, and we at FxWirePro believe that it still has ​a long way to go, before sellers can significantly dent the outlook.

The bullish outlook is based on two factors,

• At a time of turmoil in the equity market all over the world, the yellow metal is likely to receive safe-haven bids.
• More importantly, the gold’s rise would stem from a weakness in the USD. We expect the dollar to move down over the coming weeks.

Based on our calculations, we expect the gold price to reach $1260 per troy ounce and possibly reach as high as $1280 per troy ounce in the near term.