Market Matters Morning Report Wednesday 23rd March
Sentiment has turned very bullish towards Gold, and prices have run up from a 12 month low of $1050 in December 2015 to a high on the 12th March 2016 of $1287. Gold currently sits at $1248 – up $4 overnight. We look at three elements worth considering when looking at the Gold price
It’s fairly obvious that the technical picture has changed in Gold and the decline we’ve seen since the August 2011 peak has halted. Upside momentum has been aggressive, with the price up almost +20% in the space of 4 months. Typically, such as aggressive upside move shouldn’t continue if we’re to see Gold enter a longer term uptrend. Usually, vertical moves should appear at the end of a bull market not at the beginning. Ideally for the Gold bulls, we want to be seeing either a correction in time or price – so the market can digest the recent vertical move higher – otherwise, it’s not sustainable.
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