Gold (xauusd) prices have been on a tear lately, with the commodity hitting a six-year high earlier this month. The price of gold is up about 13% in 2019 alone, and many market analysts believe that the rally still has legs. So what’s driving gold prices higher?
There are a number of factors at work here. For one thing, central banks around the world are buying more gold than ever before. In 2018, global central banks purchased 651 tonnes of gold, which was the highest total in 50 years. This suggests that investors are turning to gold as a safe haven asset in times of political and economic uncertainty.
Another reason for the rally is falling interest rates. When interest rates fall, it becomes less attractive to hold traditional assets like bonds and stocks, which can lead investors to pour money into commodities like gold instead.
And finally, there’s always been strong demand for physical gold from countries like China and India, where it is seen as a store of value.”
Gold price was unable to breach 1820.00 level, to start today with a noticeable positivity and surpass the 1833.00 level, heading towards achieving expected gains during the upcoming sessions, on its way to initially test 1850.00 level, noting that surpassing this level will extend the bullish wave to reach 1875.00 as a next station.
Thus, we expect to witness more gains today, keeping in mind that a break of 1820.00 will stop the expected rise and pressurize the price to incur losses that start at 1806.90 and extend to 1790.70.
The expected trading range for today is between 1815.00 support and 1855.00 resistance
The expected general trend for today: Bullish