Thursday, June 8, 2017

Gold breaks multi year downtrend

Safehaven:

On Tuesday, the return of the safe haven buyer and a weaker US dollar combined to lift the metal to its highest level since the election of Donald Trump on November 8.

Gold futures in New York for delivery in August, the most active contract, touched a high of $1,298.80, up more than 1% in heavy volume of more than 24m ounces. Gold is up 12.8% so far in 2017.

Gold's recovery – up $80 an ounce in less than a month – was given fresh impetus by disappointing US jobs numbers released on Friday that hurt the US dollar and clouded the outlook for GDP growth in the world's largest economy. The weaker than expected data also put equity markets on edge which have been trading at record levels.

I will be keeping an eye on this as gold has been off my radar for a while. I would like to see some follow through on the break out and then a return down and test of the breakout. If we have in fact broken a six year down trend we could be looking a t a great setup for gold to run higher.

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