FLASH: Gold prices are up, Bullion and Miners are in favor, here is why.
Gold prices hit their highest marks since Y 2013 this past week, an indication that investors increasingly view the precious Yellow metal as a good alternative to paper money and government bonds at a time of accommodative monetary policies around the world.
The Fed pivoted after US-China trade dispute tensions escalate in May. The pivot supported gold. Other factors that supported gold included the USD weakening on the prospect of a Fed rate cut, geopolitical tensions, and weaker economic numbers.
The major drivers for gold will be the Fed’s Dovish tone and the market sentiment regarding global slowdown concerns. If slowdown concerns persist, gold’s demand should increase, supporting its price.
HeffX-LTN’s overall technical outlook for GDX is Very Bullish across the board for the week ending 19 July 2019.
Have a terrific week.