Gold continues its move higher, breaking past the $1,220/Oz mark. The recent appreciation of Gold is reported to be because of a possible Greek exit of the Eurozone, and the weakness in the USD after a prolonged period of strength. Gold is the ultimate safe haven, and is also a hedge against inflation. As the Californian drought worsens, there is a strong possibility that we could see some inflation in food prices. This makes Gold incredibly attractive. The largest positions reported on the futures exchange in Chicago show an increase in both long and short positions, with long positions increasing at a faster pace than short. We will have to see if this trend continues but, either way, Gold appears to be bracing itself for a sizeable move. The SPDR Gold ETF showed over 10m shares trading last Thursday. This was the highest activity registered in the ETF since the 18th March which, over a seven day bullish period, sent Gold over the $1,200/Oz mark,.
Gold is currently trading at $1,226/Oz, above its 200 day EMA.
Gold Daily Chart