In a departure from recent price action in which it has been acting more like a "risk" asset rather than a safe haven asset, gold is moving higher alongside of both the US Dollar and the US Treasury market. It appears that traders are becoming increasingly "jittery" over developments in Europe concering the bank recapitalization plan and the Stability Mechanism. Safe havens flows are definitely returning to gold based on what we are witnessing today.
Thus far the volume has been very strong on the breakout above key resistance at the $1680 level with the market challenging overhead psychological resistance at the $1700 level. If gold can put on a handle of "17", it will get the attention of money that has been sitting on the sidelines as well as putting some further pressure on shorts.
I will get a chart up a bit later towards the end of the session today as I want to see how it does for another couple of hours.
I think its interesting that despite the recent greek can kicking, gold is still incredibly strong in euros. Looks like Portugal and Italian banks are now feeling the heat.This is keeping gold strong in dollars despite some dollar strength this week.
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