Central banks have no choice but to cut rates and start bond buying to keep markets afloat.
The dollar’s current strength is because of the fall of the pound and euro.
Trump is also demanding a weaker dollar, which will be positive for gold prices.
Historically, gold has thrived during the era of rate cuts and easy liquidity.
The big question is should gold investors be worried if the stock market rallies?
Traders with aggressive shorts should not wait for prices to move below the $14 level.
Gold has lately outperformed most safe haven assets including Yen, Franc & US Treasuries.
Gold’s intermediate trend is negative, as gold is trading below its 200-day moving average.
The Russian Central Bank for six consecutive years has bought gold as it continues to diversify away from US dollars.
Gold saw strong performance in January 2019, but witnessed profit booking in February.
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