Gold bulls take advantage of crypto volatility
Gold is benefiting the most from the slide in cryptocurrencies and fears of growing inflationary pressures with central banks maintaining their dovish stance.
Prices are currently hovering near an 18-week high and is challenging the $1,900 resistance level. Given that gold has broken above the downtrend line from August and crossed above the long term 100- and 200-day moving averages, the bullish outlook remains well in play.
Fundamental factors are also supportive with money managers boosting their purchases according to data from the CFTC which saw net-long positions reaching a 16-week high.
Unless we see a surprising upside in the US dollar or US government yields, there isn’t much to suggest the momentum is fading anytime soon.