Gold pushes higher for a fourth day in a row, with the buyers in control, in what has been a smooth trend higher since the yellow metal found a base from $2560.
The frequency of headlines involving Ukraine’s use of US and UK manufactured missiles to hit targets in Russia, and the subsequent rise in market concerns that Putin will see this as a greater involvement from the international community, is resulting in selling in the EUR, EU equity futures with further upside in the gold price – although there is absolutely no panic, and the moves remain orderly and measured.
While most still see these geopolitical headlines as noise over signal and a factor that we’ll see more of into the new year, there is no getting away from the fact that uncertainty is building and it can be prudent to hedge while you can, and it’s cheap, rather than having the market force it on you.
Gold remains in the shadows of Bitcoin and the wider crypto complex and granted gold may not see the same velocity in the rally, gold is rising for very different reasons, and the comparison shouldn’t be made. That said, for those positioned for upside in gold, then they’d be eyeing technical levels with gold now needing to break above the 50-day moving average ($2661.12), which it currently pushes up against – so if this four-day move is to develop into a more consistent trend back towards $2700, a break of the 50-day MA would likely compel shorts to further cover, and promote further organic buying.
