Gold outlook remains bullish!

Profit-taking and better-than-expected US Consumer confidence figures pushed Gold lower yesterday. The Conference Board’s consumer confidence measure jumped to 70.4 in February, from a revised 64.8 in January. This encouraged optimism that the US economic recovery might be gathering momentum as households increase spending. Richmond Fed Manufacturing data also pointed to a stronger US economy. This most likely dampened investor enthusiasm for the relative safety of Gold.

However, these cautions have been forgotten and it appears as if precious metals are once again headed upward. Continuing tensions in Libya and other parts of the MENA region are keeping investors interested, even thought we’ve seen some exchange-traded fund selling. The outlook remains bullish for today, with the added benefit of a weaker dollar. Although with physical demand generally weaker, key resistance levels could prove hard to break.

Gold support is at $1,390 and $1,382. Resistance is at $1,409 and $1,419.

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