Gold’s powerful rally appears to have run into a bit of resistance this morning. Yesterday, gold extended its gains and pushed further into record territory as it approached $4,400. It drew support from persistent safe-haven demand as investors sought protection from turbulence across equities due to banking concerns and a surge in stock market volatility.
Gold’s rally has been remarkable, fuelled by a combination of fear-driven buying and a weakening US dollar. The move higher started some years ago as less-established central banks began to increase their bullion purchases. But it went on to attract attention from a wider range of investors, with traders increasingly eyeing higher price targets while acknowledging that a sharp pullback could follow once momentum finally fades. The daily MACD continues to push into very overbought territory.
Source: TN Trader
After an initial pullback, silver surged to a fresh all-time high yesterday of $54.60 per ounce. It has dropped back a touch this morning but remains within sight of its record high. There’s been plenty of buying interest, particularly when silver broke above $40 at the beginning of September. But, as with gold, the daily MACD continues to look very overbought.
