XAU/USD Bulls Are Set Free

London (Oct 15)  After gold price went beyond the consolidation range of $1185-$1215, it has hit its 10-week record high

How long does one have to wait for a good life? If they just wait, it will be long! Gold has shown the best daily results since the referendum on Brexit in 2016. In addition, some speculators and the ETF fans decided to be proactive. Taking an advantage of the biggest net shorts for the precious metal, they started buying it in all forms, which drew the asset beyond the consolidation range of $1185-$1215 and allowed working out the recommendation to by gold inside the range and at its top border breakout.

The gold price surge was supported by the biggest sales in the U.S. stock market and the U.S. inflation rate failure to step away from the target. Both factors can be thought bearish for the greenback, as the S&P 500 supported the foreigners’ demand for the U.S. equities and was the evidence of the U.S. strong economy; and a gradual change of CPI reduces the risks of the Fed’s aggressive monetary restrictions. Especially when Donald Trump call the central bank to be mad. All of this looks natural, however, there is a remarkable thing. As it was at the beginning of October, the trading volume was 12 times more than on average indicated that strong speculative demand for gold by the ETF fans had appeared before the gold price surged. According to Commerzbank (DE:CBKG), the SPDR Gold Shares (NYSE:GLD) holdings of gold had boosted by eight tons after months of decline a day earlier than the 2.5% XAU/USD rally started.

Investing.com

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