Gold surged to fresh all-time highs this morning, trading at $3,232 at the time of writing. The rally began in December 2015. But it really took off in February last year when prices finally broke above $2,000 per ounce with some significant momentum. Gold hasn’t looked back since.
According to its daily MACD, gold was looking seriously overbought at the beginning of this month. Then came President Trump’s announcement of reciprocal tariffs on 2nd April. Initially, gold rallied to new highs. But it suddenly reversed direction, dropping close to 7% over the three subsequent sessions.
Source: TN Trader
Usually, gold would need to consolidate at new lows before fresh buyers emerge to take advantage of lower prices, and a reduction in overbought conditions. But investors were desperate to find a safe haven amongst the market carnage, particularly after the flight into US Treasuries, the traditional ‘flight to quality’ trade, went so spectacularly wrong.
Gold continues to attract buyers on the look-out for safe-havens amid the weaker dollar, and the relentless stream of competing tariff headlines. But it is now up over 8% since Wednesday, so ‘caveat emptor.’ Silver has yet to garner the same level of interest as gold. At $31.50 per ounce, it remains well below its own all-time high just below $50 from April 2011.
