Shall gold breach its historical high!!
Gold prices hovered today above $1015 an ounce reaching its second highest historical level after touching a high of $1035 last year. The shiny metal was boosted by the drop in the U.S. dollar versus a basket of major currencies which enhanced demand on the metal as an alternative investment.
The green currency fell to its lowest level this year against a basket of major currencies as indicated by the dollar index which is now at 76.35 compared with the opening at 76.53. The dollar is continuing its downside trend that started last week. Now, the federal currency is oversold as seen by the Stochastic Oscillator, where investors were waiting for a rebound. However, with the buoyant outlook and hopes for recovery drove the dollar to the downside.
Yesterday, retail sales report in the
As economies move towards recovery and oil prices increase, inflation concerns arise, lifting gold prices up as an inflation hedge. Today, the euro zone and
Meanwhile, gold is traded at $1116.05 recording a high of $1017.99 and a low of $1006.10. The metal breached the resistance levels at $1012 and $1015 and will face the coming resistance at $1025 then $1035. The question is shall gold breach its historical high or is it going to face profit taking from investors or a rebound from the dollar.
On Tuesday, gold added $7.60 or 0.76% to close at $1007.45 an ounce. Gold prices were setin
Among other precious metals, platinum edged up to $1337.00 from $1331.00at Tuesday's closing; palladium soared to $295.00 from $294.00; and silver rose to $17.21 from $17.03.