The metal climbs on Wednesday re-visiting resistance level manages to give a higher close of 14 days.
Despite strong US data, the metal remains favor to traders. We can witness golden cross after a year and a half taken place on Friday.
“Uncertain times in financial markets have triggered investment demand for assets with safe haven characteristics,” Georgette Boele, a strategist at ABN AMRO, said. “Second, lower US Treasury yields are increasing the attractiveness of gold and other precious metals as gold doesn’t pay a coupon or dividend.”
Gold-backed ETFs inflows reached $ 5.17 billion in February, the highest since February 2009 high. 2016 as of March 1, gold-backed ETFs inflows $ 6,866,000,000; the world’s largest gold ETF – SPDR GOLD TRUST inflows reached $ 5.5 billion so far in 2016, leading the United States to other foreign media tracking ETFs inflows.
San Francisco Fed President Williams on Wednesday that the US economy is not facing a significant risk of recession, gradually raising interest rates is “the right strategy.”
Given the firm stock markets, rising US bond yields, increasing Fed interest rate expectations again and appreciating US dollar, however, gold is still faring relatively well,” Commerzbank said. “It is presumably finding support from the ongoing ETF inflows – another 10.8 tons being recorded yesterday.”
The metal is trading at $1,238.50 at Asia’s session. Earlier high seems at $1,248.50 and $1,253.50. 2016 high was printed at $1,263.35 levels.
In the weekly chart, 200ema seems at $1,260.00 and 100Msma finds at $1,262.00. In the hourly and four-hour charts, 100.00FE seems at $1,263.00 levels.
What’s on today?
What’s on today?
USD- Unemployment claims
Markit Services PMI
ISM Non-manufacturing PMI
Traders eye on tomorrow’s NFP data.