Gold records biggest weekly gain in 3 years

Bloomberg

Call it the trifecta that gave rocket fuel to the gold market: Powell, positioning and politics.
Gold ended the week trading near $1,400 and recorded bigg-est weekly gain in three years.
It was Jerome Powell’s signal that Federal Reserve is moving closer to lowering interest rates and a brewing conflict between Iran and the US that lit a spark in the market, burnishing gold’s credentials as a hedge against inflation and a weakening dollar. It was enough for gold to break through a long-term technical resistance at $1,350 an ounce, which unleashed a wave of short-covering and momentum buying. There are a lot of newcomers to the gold rally. Investors poured almost $3 billion into exchange-traded funds linked to the metal so far this month, which could be the biggest inflow since January.

Leave a Reply

Send this to a friend