NEW YORK, NY – Gold gained momentum as the holiday week rolls. The precious metal’s prices are inching near all-time high levels as investors remain vigilant about world economy.
Gold broke free of the trading range it was limited to the previous week. It’s currently circling the $1,485 level even though there’s no consistent follow through. If it continues on this path, it will end the year higher by 16%. It will go down in history as its largest one-year rally since 2010.
It’s enjoying a 50-day SMA acceptance, and hourly chart indicators are showing potential positive traction supports even though global risk sentiment has been improving. However, any succeeding advance will likely find resistance near the $1486 to $1487 level.
The resistance will be followed by a $1490 confluence barrier, which comprises the hundred-day SMA and the upper end of a short-lived ascending channel.
The yellow metal isn’t the only one breaking trade records. US stocks are also setting record highs even as most markets are settling down for the holidays. The renewed optimism about the US-China trade deal appears to be pushing share further.
The Dow Jones went up by 0.38% or 108 points to 28,563 while Nasdaq gained 0.2% or 17 points to 8,941. The S&P 500 enjoyed an increase of 0.13% or two points to 3,223.88. 10-year Treasury bonds remained at 1.91%.
Boeing shares rose after its CEO announced it was resigning. Apache Corp. stocks also received a boost after it was revealed a joint venture to develop an oil field was in the works.
European shares opened lower and remain muted ahead of Christmas and Boxing Day. The FTSE slipped 0.2% to 7,569. France’s CAC 40 inched down 0.1% to 6,013.31 while the DAX of Germany remained at 13,319.18.
There were some rumblings earlier over reports North Korea might be conducting a missile test. But those worries were somewhat mitigated by US President Donald Trump’s comments that the Phase One deal will be signed soon. China’s news regarding a reduction of tariffs over an array of gods also had a positive impact.
While risks of a trade meltdown between China and the US might have been and Brexit appears to be set, huge risks remain. At least, that’s what the Mizuho Bank wants to remind the general market.
In a note, the bank stated it will be “foolhardy to presume a benign outlook.” It mentioned Brexit, the trade deal, and the current happenings in US politics as wild cards. It also claimed that the risks have just been deferred.