Gold taking a run at $1,200/ounce as risk-off grips broader markets
|- Gold on the rise as broader markets take a knee.
- Rising global trade tensions, rising US interest rates all doing their part to sap investor confidence at the mid-week.
Gold prices are surging ahead as investor confidence evaporates in the mid-week, and the precious metal has added nearly $10/ounce to its market price from Wednesday's low.
Major indexes are in full-scale decline, with the S&P 500 posting its worst single-day performance since February of this year, with the Dow Jones Industrial Average (DJIA) shedding over 3% for the day, as well as continued spikes in the key 10-year Treasury yield, which continuously threatens to cross further into 'unsustainable' levels above 3.25%, a funding level that would see the US struggle to upcycle its financial burdens.
Gold bugs experienced a fresh wave of bullion bidding as broader bourses backtracked, although no single catalyst can bear the burden of the blame, and shriveling investor confidence could see the yellow metal continuing its rise as traders begin to crack under the pressure of global trade tensions and rising US interest rates.
Gold Levels to watch
Gold has been rangebound for nine consecutive weeks, supported by 1,180.00 to the downside, and buyers will be looking to take a run at the last major swing low and current upper barrier at 1,200.00, but a failure to break above and beyond could see bullion buyers struggle to maintain 2018's lows near 1,172.00.
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