Is there still great demand for safe havens and inflation hedges?
After a period of consolidation, gold prices have been rising again in recent days, hitting a 10-day high in the process.
This comes even as central banks signal an aggressive tightening cycle this year to combat soaring inflation and risk appetite remains healthy as Ukraine and Russia continue to engage in negotiations.
Clearly, there is still plenty of uncertainty and unease in the markets and while central banks are trying to get to grips with inflation, the worst is yet to come. And with commodity prices soaring, it could still get much worse.
So there’s still plenty of appetite for a safe haven and inflation hedge, as has become evident once more.
There was plenty of support around $1,900 around the 61.8 fib and 200/233-day SMA band on the 4-hour chart where the price initially rebounded off. But how much higher will it go? Can it reach record highs?
It saw some resistance around $1,960 and a move above here could see it test $2,000 once more. A move above here and talk of record highs could soon follow.