Yet another day where the gold bulls head into the weekend feeling increased confidence in their position, with big levels being broken – we can throw a raging USD at gold and it shows little interest – throw in higher real rates, lower crude and record equity highs, and again, gold grinds higher, seemingly impervious to these traditional negative forces.
The big news on the day was the break of $2700 in spot gold, and while Europe may still see things differently and fade the rally we’ve been treated to in Asia, on the day the sellers have gone missing, where upon the break of $2700 broke it was one way buying into $2711.
Gold futures played a part, and when the futures price smashed through $2712.70 (Thursday’s new all-time high) we saw huge volume kick in, suggesting a solid mix of stops triggered and momentum buying, which propelled futures higher, and in turn, this has dragged the spot market higher in sympathy.
It’s hard to truly explain why the yellow metal is where it is, and we can all hazard a guess, but this is a hot market, and while we may not see crypto-like volatility and range expansion, to many with a lower risk tolerance, that is absolutely why they are swimming in these golden waters
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