Gold opened the trading session with a gap of about $10 jumping from $1,322 to opening price of slightly above $1,332. The reason for the gap open is the weekend geopolitical tension created by North Korea. The continuation of missile launches directed to targets in Japan's sea is raising concerns amid the political scene. World leaders are calling for provocation to stop. South Korea says it expects further missile launches, Russia and Japan are calling for North Korea to stick to the UN resolutions and Trump is threatening with a massive and effective military response.
All of this creates uncertainty. And in the midst of uncertainty Gold thrives. If these tensions continue to spell dark clouds we might see Gold break the barrier of $1,400 this month.
So far today Gold reached a high of $1,339 and is now trading at $1,333. More hedge funds pile Gold into their portfolio as major currencies are seeing some outflows of capital.
Chart: XAU/USD D1
It will likely continue rising.
ReplyDeleteI too think we may see it reach $1400.
ReplyDeleteCan be an exhaustion Gap, so be careful.
ReplyDeleteGreat analysis!
ReplyDeleteGood post. Very helpful.
ReplyDeleteOnother bullish week.
ReplyDeleteGold has a gap down.
ReplyDelete