Gold in the spotlight
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 hasn’t 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.
Carlo Alberto De Casa – Chief analyst, ActivTrades
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