I argued the bull case for gold in my post of May 7 entitled “Gold bullion – regaining its shine?” With gold trading at more than $950 an ounce this morning, it would certainly seem as if renewed interest in the yellow metal is being stirred up.
As printing presses are running at full speed to produce ever-increasing quantities of fiat money as governments engineer the greatest asset price reflation in human history – and the US greenback is heading South – the longer-term fundamental case for the yellow metal is arguably positive.
As to be expected, there is a strong relationship between the gold price (green line) and Treasury inflation-protected securities (red line).
The shorter-term technical picture is also starting to look interesting. This is explained by Adam Hewison of INO.com who prepared a short technical analysis of gold’s most likely direction and key chart levels. (The analysis was done on Wednesday with the gold price at $935, but is still as relevant as it was two days ago.)
Click here or on the image below to access the video presentation.
Originally published at Prieur du Plessis’s International Investment Blog and reproduced here with the author’s permission.