Gold hits a fresh six-year high of $1,495.70
Where is the limit for gold from here? Right now, there is the prospect of the $1,500 standing in the way but beyond that it is hard to see anything stopping the gold train from marching higher if we see a further break to the upside.
The 50.0 retracement level in the big picture rests at $1,483.80 and beyond that there is some swing region resistance around $1,527-65 but it’s hard to really pick at a key level to watch out for considering the upwards momentum.
As mentioned earlier in the day, with negative yielding debt having reached a record $15 trillion this week and the outlook still suggestive of more rate cuts (lower yields) by central banks around the globe, gold stands to be among the major beneficiaries.
Add to the fact that global trade tensions remain heightened via the US-China trade war and gold reclaiming back its safe haven status somewhat, it’s been a double boost for the commodity throughout 2019 thus far.
Eventually, we’ll see some form of retracement and profit-taking down the road but given the global backdrop over the next year or so, it’s hard to argue against gold being a standout performer in the long-run considering the circumstances highlighted above.