The quick turnaround of share indices has renewed interest in gold with the spot price jumping up to $1,740 as investors move liquidity away from stocks. In a scenario where the greenback is losing strength, we are again seeing a favourable environment for bullion, which is returning to its role as a safe haven, while the inverse correlation between gold and stocks recovers strength.
Technically, a clear climb above the resistance placed at $1,745 could open space for further rallies, with the 7½-year-top placed at $1,765 a potential target.
