Gold leapt more than 1.5% to a fresh six-year high on Wednesday after three central banks cut interest rates in the face of slowing global growth and persistent trade tensions.
Unfavourable global macroeconomic conditions, US-China trade disputes and Brexit drama among many other geopolitical risk factors have accelerated the flight to safety. With central bank across the world joining the global monetary easing train, zero-yielding Gold is poised to perform incredibly well in this low-interest rate environment. The precious metal remains technically and fundamentally bullish and this continues to be reflected in price action.
Focusing on the technical picture, a solid daily close above $1500 is likely to strengthen bulls further and open the doors to $1530. Should $1500 prove to be a stubborn resistance, the precious metal is likely to retrace back towards $1490.
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