Gold continues to push higher in today’s trading, hitting its highest level in almost a year on the back of US dollar weakness and warnings that North Korea will launch another missile over the weekend which sent investors fleeing for the safe haven of gold.
The situation now seems to be beyond repair with a new missile launch coming up and after last week’s bomb explosion.
"The flight to quality as a result of North Korea's self-claimed detonation of a hydrogen bomb has caused investors to flee riskier assets and go into your safe haven asset like the gold market” said Phil Streible, senior market strategist at Chicago-based RJO Futures.
Mr Streible also noted that another rate hike from the Fed this year is all but over which will also support gold’s current trend,
"This trade should continue now, with Hurricane Irma coming through and what this will do is it will handcuff the Federal Reserve from having the ability to raise interest rates for the remainder of the year.” He added.
On the chart we can see that gold has reached a strong resistance level which occurred in September last year and if it can make this break in the next few days we are likely to see the price move up to $1.370 and the previous resistance at $1.350 should become the new support level.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investor accounts lose money when trading CFDs with this broker. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investor accounts lose money when trading CFDs with this broker. Before deciding to trade foreign exchange you should consider whether you understand how CFDs work, your investment objectives, your level of experience and readiness of taking risk. The possibility exists that you could sustain a loss of some or of all of your initial investments and therefore you should not risk more than you are prepared to lose. Please seek independent financial advice if necessary.
|By clicking "Continue" you will be redirected to the website operated by FIBO Group, LTD company registered in BVI and regulated by FSC. Please familiarize yourself with the Customer Agreement through the link. Click "Cancel" to remain on this page.|