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 Market Analyst - Asia Pacific
With more than 30 years of FX experience – from spot/margin trading and NDFs through to currency options and futures – Jeffrey Halley is OANDA’s senior market analyst for Asia Pacific, responsible for providing timely and relevant macro analysis covering a wide range of asset classes. He has previously worked with leading institutions such as Saxo Capital Markets, DynexCorp Currency Portfolio Management, IG, IFX, Fimat Internationale Banque, HSBC and Barclays. A highly sought-after analyst, Jeffrey has appeared on a wide range of global news channels including Bloomberg, BBC, Reuters, CNBC, MSN, Sky TV, Channel News Asia and the New York Times. He was born in New Zealand and holds an MBA from the Cass Business School.
Jeffrey Halley
Jeffrey Halley

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