Investor demand for bullion remains high, with the price getting close to last week’s peak, which was the highest level seen in the last 8 years. The price has been supported by the weakness of the greenback, with the Dollar Index falling below 97 in yesterday’s trading session. A clear break up above $1,790 could open space for further rallies, while any significant correction on stocks would be another supportive element for bullion.
From a fundamental point of view, we must remember that gold’s strong bullish momentum is massively supported by investment demand, while jewellery and industrial demand is slowing. Moreover, central banks are still buying gold, albeit at a slower pace to the last few years.
