Gold is strengthening despite the recovery of the US Dollar
Gold price is rising this week and just reached a new 3-month high at $1,240. Despite the recovery of the greenback, gold is gaining momentum, mainly due to the uncertainty of the current macro-economic and political scenario. Trying to make a summary, we could say that the risk of US trade wars, against both Mexico and China, the last dovish statement of the FOMC and the uncertain surrounding the European political scenario pushed the investors to buy “safety” with the gold.
The yellow metal passed the first important resistance placed at $1,220, finding strength to continue its movement well above $1,330. Technically this represented an important bullish signal, confirming the good momentum of the gold, after the 14 out 16 positive sessions achieved between the end of 2016 and the beginning of 2017.