Gold pushes to a fresh all-time high of $2,033
Upon breaking the 2011 high, gold has put up a good showing as gains consolidated just around $1,980 levels before breaking above that in a push above $2,000 yesterday.
As we progress through the new day, those gains are extending as we see gold climb to fresh all-time highs above $2,030 currently.
From a fundamental perspective, it is tough to find fault with gold but the parabolic climb over the past few weeks has really been something else.
Technical exhaustion would be as good a reason as any for gold to retrace but so far buyers are looking unrelenting. Just take a look at the near-term chart:
The slight pause around $1,980 never really saw sellers wrestle back near-term control as buyers kept a defense of the 100-hour MA (red line) throughout.
As much as I would like to keep talking about how great the prospects for higher gold prices are looking, I would be cautious about any potential violent pullbacks – especially when the trade starts to become one that “everyone is talking about”.
But in any case, any pullbacks will prove to be good dip buying opportunities in the longer-term. Especially when central banks aren’t going to move away from current policies any time soon, keeping gold’s strongest tailwind very much alive:
However, so long as they keep the punch bowl full, the party looks set to continue.