Gold put in a strong performance overnight, soaring to a fresh record high of $3,086 per ounce. Unlike US stock indices, gold has had a stunning first quarter.
Having started this year just a tad above $2,600, it has added close 20% so far, with 8% of these gains coming in March alone.
Investors have been adding gold to their portfolios to diversify, having shunned the precious metal in favour of tech stocks for many years.
The daily MACD continues to push into overbought territory. But the simple fact that gold remains less overbought than it was six weeks ago has helped to dampen investor concerns over an imminent pullback.
Source: TN Trader
For now, they seem relatively happy to continue climbing their ‘wall of worry’. So far, profit-taking has led to shallow dips which have been met with fresh buying. But this only increases the probability that there will be a bigger pullback at some stage.
If so, would that signal a market top, or could it be a precursor to a more protracted stage of the rally?
Yesterday, silver smashed above $34 per ounce to hit a five month high. Now it needs to break and hold above $35 to suggest that it has a chance of taking out its own all-time high close to $50 from 2011.
