Shayne Heffernan Outlook: LONG positions above 1727.3 with 1738 & 1749 as next targets.
The downside penetration of 1727.3 will call for 1720 & 1711.
Comment: the RSI is above its neutrality area at 50%.
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Gold Market investors added Gold Bullion to hedge against financial market turmoil, depreciating currencies and the threat of inflation. Holdings in Gold backed ETPs rose to 2,604.207 metric tons yesterday.
Gold ETF funds climbed to a record high of 75.421 million ounces on November 16th showing how institutional demand for the ETF remains robust as ever. Gold ETF Holdings rose 99,000 ounces Friday following 136,000 on Thursday. So far this month, ETFs have grown by just 491,000 ounces.
Gold rallied 70% as the Fed bought $2.3 trillion of debt in two rounds of quantitative easing from December 2008 through June 2011. Investors buying bullion as a hedge against inflation and a weaker dollar generally earn returns only through price gains, increasing its allure as interest rates decline.
It rose six-fold since the end of 2000, beating the 34% advance in the S&P 500, with dividends reinvested, and the 91% return on Treasury’s.
