Gold is trading sideways

Gold is trading sideways. However, there are growing signs that support on the downside is again growing firmer, setting the scene for another break higher in the gold price.

Over the past two days, there appears to be increased buying interest in the physical market with gold around $1,230. A few weeks ago, gold above this level attracted scrap to the market. At the same time investment demand remains strong. The latest ETF data shows that holdings stand at 2,013 tonnes of gold—up almost 32 tonnes over the past week and up more than 210 tonnes since the start of May.

While market view is for gold to move higher, $1,220/$1,250 remains they preferred trading range in coming days. Market report believe the bias is for a break to the upside.

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