Gold Comex lustring near six years high of $1,522.35 hit yesterday around $1510 an ounce as of now and continue to bounce higher and higher amid rate cuts by several central banks & panic in global stocks on economic slowdown worries. Same rally has been seen at MCX where yellow metal is shining at its record high.
Gold and Silver are showing massive strong buying momentum. Such market can’t be sold as every short will create fresh buying the market, resulting into big loss out of the pocket of bears. Extremely overstretch but still up.
Central banks around the world are surprising investors with generous, and sometimes completely unexpected, rate cuts that are fueling gold’s rally. Also, tumbling asset classes because of an on-going trade war between US–China is threatening investors which in turn enticing them to seek perch under safe heaven.
Prices are likely to head towards $1550/$1600. Downside supports are $1400/$1365.
Story by Shelly Airan for www.tarunsatsangi.com