Gold is continuing its massive rally, driven by the escalation of tensions between the US and Iran. Bullion’s reaction was – once again – strong, with the price climbing as high as $1,587, before slowing down, but further gains are still likely with markets waiting to see the Iranian retaliation (and any further US moves).
From a technical point of view, we should note that the price has broken through the previous six and a half year high, surpassing the key resistance level of $1,550 without any trouble. This highlights the huge gold appetite of investors currently, where we are seeing a switch of liquidity from risk-on assets like equity, to safe haven instruments, such as gold.
