Is The Latest Gold Run Coming From USD Weakness Or Is This A Run For Safety?
We have seen Gold run higher for two straight weeks non-stop. The last two weekly candlesticks are pretty bullish and they have undone all the work that Gold bears did in the previous two weeks.
But, is this because the USD has been beaten up in the last two weeks or is this because of worsened global economic conditions?
Well, the global economy seems to be doing OK at the moment apart from the UK economy. Yes, it's true that Trump is a headache for the markets, but they already got used to him. Perhaps, in US politics things are escalating too far and the market is getting really worried he will survive his term.
Remember that a few months ago it was all about rhetoric and tweets, while now we are seeing the Russians getting involved and his closest staff members are resigning.
So there's definitely some caution in the markets.
Of course, the USD wekaness has helped, so it's both in my opinion, hence the unstopable run. It broke all the moving averages on the way up, so gold sellers, beware.
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