Safe Haven’s Sends Gold Higher

Gold shook off a rather tired looking technical picture overnight, as tensions in Europe, the Middle East and the Korean Peninsula took precedence and saw Gold vault over $20 to $1275. The safe haven effect is clearly in play once again ahead of the Easter holiday with volumes in both spot and options well above average.

 

Gold has finally broken and closed above its 200-day moving average at $1257.50 which now becomes support ahead of the $1240 level. From a technical perspective, the way is now clear for a run at $1300 and possibly higher.

 

 

Gold opens at its highs at 1275.50 this morning in Asia and any dips intra-day to 1265 should be eagerly sought. With geopolitical tensions, if anything, ratcheting higher, post a G-7 Nations acting like a League of Nations, this will likely remain the theme running through the long weekend.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Jeffrey Halley

Jeffrey Halley

Senior Currency Analyst
Based in Singapore, Jeffrey has over 25 years experience in the financial markets, having traded currencies, options, precious metals and futures. Jeffrey started his career at Barclays Bank in New Zealand. However he has spent most of it in London and Asia.Jeffrey focuses on the Asia time zone across asset classes. A regular commentator on business news TV and Radio, he is originally from New Zealand and holds an MBA from Cass Business School, London.