XAU/USD market mood: Gold has reasons for strength in the medium term [Video]

The record low-interest rates around the world mean that cash investors have little incentive to keep assets in cash. Secondly, the huge amounts of quantitative easing from the central bank around the world mean that cash is literally devalued. This increases the appeal of gold. Thirdly, the fact that real yields are negative on US 10 year bonds means that if investors parked their money in a 10-year bond it would, when inflation is taken into account, actually mean that yields on the bond would be negative. Read More…

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Gold: The buyers are looking to bounce back [Video]

Gold has been in decisive correction mode recently, but this move has slowed in recent days. Now, having posted a “bullish engulfing” one day candlestick, the buyers are looking to bounce back. The question is whether this is a sustainable recovery. This leaves the outlook at an intriguing stage. Key supports were broken during the correction, to leave old bulls sitting in stale positions. How they respond to a rebound could be key, as a near term rally could simply be seen as a chance to close these old long positions. The daily chart shows resistance above $1902 from the old August into September range, whilst nearer term the hourly chart shows resistance around $1882/$1894. Gold needs to post a series of positive candles to improve confidence once more. Another positive candle today would help, but this resistance band needs to be broken, this means a close above $1902. Read More…


Gold Futures: Further upside likely

Open interest in Gold futures markets increased by around 3.3K contracts on Monday, reversing two consecutive pullbacks in light of flash data from CME Group. Volume, in the same line, rose by almost 8K contracts, also following two drops in a row.

Prices of the yellow metal posted decent gains at the beginning of the week. The price action was on the back of increasing open interest and volume, leaving the door open for extra gains in the very near-term. That said, the Fibo level (of the June-August rally) around $1,920 per ounce of gold emerges as the next up barrier. Read More…