Gold continues soaring with new record breaking highs!
Gold rose throughout yesterday's trading session, recording its new record high at 1217.20 before closing at 1214.80 higher by 1.57% in New York. As for today, gold continued soaring and managed to record its highest at $1226.25 per ounce till this moment, where the price returned to trade at $1219.00 per ounce rising by 0.38%, as of 02:26 EST.
Meanwhile, the positive bullish trend on gold, continued over weekly basis; this week would be the fifth consecutive week of gains for the shiny yellow; whereas on the monthly scale, trading continues positive for the fifth month. This bullish direction for gold was due to strong diverse demand on the metal, which included traders and speculators, as well as central banks and portfolio managers, in addition to governments around the world. Demand also included future contracts and physical demand market price demand, alongside massive demand gold options and forwards.
Furthermore, UBS said that gold could surge towards $1300 per ounce, throughout the upcoming period; where numerous sides expect gold to reach $1500 per ounce in the upcoming year.
By observing other precious metals, we see that their prices have notably appreciated today and yesterday; platinum is trading at 1497.00 today, after closing at this level as well in New York yesterday gaining by 1.22%; whereas silver continued rising today and is trading at 19.28, as of 02:26 EST.
We are waiting for the release of U.S. jobs data and European central banks' decision today, where we see that traders have not stopped demanding precious metals, meanwhile constant liquidity keeps entering markets and that could be evidence of strong demand on precious metals, especially on gold. On the other hand, the dollar's continuous drop is encouraging investors to continue demanding gold to diversify portfolios.
Commodity indices fell yesterday; where the RJ/CRB dropped 2.54 points and closed at 276.80 in New York. This fall is proof that numerous commodities dropped yesterday, despite that precious metals count for a strong weight in the index. Meanwhile, U.S. stock indices closed with limited change; whereas European indices closed with gains yesterday, yet today we see that Asian stock indices closed in the green which market are now trailing. This major rise in Asian indices was due to spread confidence throughout financial markets.
We currently still expect gold to continue appreciating over the medium term, but at the same time we will not rule out the possibility of a heavy fluctuation and bearish waves over intraday short term basis every once in a while.