Gold climbs higher despite the rises on stocks and USD [Video]
|Gold is back above the 1600 USD/oz after it managed to defend the support on the 1550 USD/oz. Gold is climbing higher despite the strong American Dollar and relatively high demand for stocks. Situation is super interesting, especially that the current movemenbts are against the common theory. Most of the traders are taught that rising stocks and USD create a negative environment for the Gold. As You can see, theory is one thing and practice is the other. Just 3 dollars more, and XAUUSD will climb to the highest levels since the beginning of 2013. Chances for that are very high.
As we said, indexes are doing well. On Monday, both SP500 and DAX were on the all-time highs. That is a good sign. The bad sign might be that those highs could create the head od the head and shoulders pattern. On both indexes, the price is currently trying to create a right shoulder. Buyers are still safe. In both cases, the price is above the necklines. On SP500 the neckline is around 3355 points and on the DAX around 13577 points. Breakout of those two levels can brings us a mid-term correction but so far, buyers do not seem worried.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.