Gold Outlook: Gold price rises to new multi-year high on fresh risk aversion

Slobodan Drvenica Windsor Brokers

Spot gold jumped to new over eight-year high on Monday, following break of psychological $1700 level and former high at $1703 (posted on 9 March).

The yellow metal was up 1.36% for the day so far, extending Friday’s 2.37% advance.

Fresh risk aversion in the market on strong fall of US stock indexes boosted demand for safe-havens and lifted gold price.

Full retracement of deeper $1703/$1451 correction signals continuation of larger uptrend since end of 2015.

Break above $1700 zone pressures pivotal barrier at $1714 (Fibo 76.4% of $1920/$1046 fall, with stronger bullish acceleration to expose target at $1795 (Oct 2012 high).

Res: 1711; 1714; 1750; 1795
Sup: 1703; 1700; 1690; 1675

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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