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.
- Trading within a Bearish Ascending Wedge.
- This is a bearish reversal signal and the lack of progress higher has confirmed a sentiment shift.
- A break of support at 1772.00 should lead to a more aggressive move lower towards 1740.00.
- Although the anticipated move lower is corrective, it does offer ample risk/reward today
Recommendations: Sell/Sell limit @ 1780 Target: 1760/1740
N.B : Valid for one day/24hours
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