GOLD has cleared through $2000 per oz. $2300 next on the cards.
Gold over the last few months has become one of the biggest beneficiaries in the world after the recent global pandemic has forced many people into buying Gold (XAU) as a safe-haven asset.
As there is a huge amount of uncertainty, the worlds central banks are pumping the markets with liquidity via QE and this has a knock-on effect to yields in the fixed income markets. If the overall inflation rises due to the weakening of the dollar and yield collapse this could mean gold becomes more attractive to investors. Gold does not widely offer any interest payments or dividends but it is a store of value.
In terms of Technical Analysis, we are now looking at new highs with an upside Fibonacci alignment with the D extension lining up with the $2300 level. Throughout online sources, we could even see much higher prices depending on the amount of buying pressure we see over the next few weeks.
As there is a huge amount of uncertainty, the worlds central banks are pumping the markets with liquidity via QE and this has a knock-on effect to yields in the fixed income markets. If the overall inflation rises due to the weakening of the dollar and yield collapse this could mean gold becomes more attractive to investors. Gold does not widely offer any interest payments or dividends but it is a store of value.
In terms of Technical Analysis, we are now looking at new highs with an upside Fibonacci alignment with the D extension lining up with the $2300 level. Throughout online sources, we could even see much higher prices depending on the amount of buying pressure we see over the next few weeks.
