In the last few weeks investors have run away from the US Dollar with the Dollar Index falling from 100 to 92.5. We are now seeing signs of stability with the support level at 92.5 pulling the index up to 93. This modest recovery of the greenback slowed down gold’s breakneck rally, with bullion price consolidating above $2,050 after a record breaking few days. This small correction has not changed the main trend, which remains strongly bullish for gold as investors’ hunger for bullion is peaking, just like the price of the yellow metal.
On a separate note, we should point out the skyrocketing price of silver, which jumped close to $30 yesterday. We are now seeing a fall also on silver, to $28-$28.5. This decline can also be seen as a correction after a huge rally, while the main trend still appears supportive.
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.