What a breathtaking run Gold has been since its breakthrough in early March.
Gold daily
We hit new all-time highs, up $37 to $2,326 after an earlier decline to $2,268 was breached. Gold has risen in eight of the last nine days.
There’s no doubt that it’s overbought on almost every metric, but I think there’s a strong case to be made that retail hasn’t arrived yet. Gold is also a relatively small market that is suddenly getting attention on CNBC. If retail and options traders start flooding in, this could move.
This begs the question: what has driven this decision so far.
I think it’s quite clear that it’s the central banks that are buying, and most likely China.
Here is a superb painting by Tavi Costa.
Perhaps the tell-all came yesterday, when China was on vacation and gold fell, accompanied by a rally in bonds.
cnbctv18-forexlive
