Gold benefiting on two fronts

Gold is no only seeing safe haven flows, but it is also used as wealth preservation asset these days. With interest rates at record lows, investors are piling into Gold again.

The recent Gold rally is not showing any extreme behavior the fact that Gold is trading below its 2.5 Bollinger Bands shows that the rally is fairly moderate and not fear driven. The area of 1,150 could pose some challenges as two longer term trendlines meet with a resistance level, but if the macro environment remains uncertain and volatile, we expect the level to break eventually.