If there is a new correction on stock markets, gold is expected to be a perfect store of value. Investors are betting against central banks as they think that currencies are now hyper-diluted compared with bullion. Gold, different from the greenback and other currencies, cannot be printed and investors are buying it in vast quantities, driving both the spot price and futures to less than $50 away from their highest ever levels.
The trend remains strongly bullish, even if some technical indicators are now showing gold as hyper bought, reflecting how quick the recent rally was. At this stage, there is no correction signal, while the weakening of the greenback is further boosting gold’s rally.
Chief analyst at ActivTrades and technical analyst for Italian newspaper 'La Stampa'. Carlo Alberto provides regular commentary for UK outlets including the BBC, Telegraph, the Independent Bloomberg & Reuters. He is also a weekly commentator for CNBC Italy and a columnist for La Stampa. He worked for Bloomberg as their Equity Research Fundamental Analyst before joining brokerage ActivTrades in 2011 to specialize in currency markets and commodities. In 2014 he published a 250-pages book on gold and the gold market, followed in 2018 by a new updated edition.
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© 2019 High Leverage FX - All Rights Reserved.