ANALYSTS: NEW ZEALAND SHOOTING SENT GOLD PRICE HIGHER

The attacks over in New Zealand has stunned the markets; Investors are seeking shelter under safe haven assets.

New Zealand news is positively supporting gold, Brexit uncertainty is also supporting gold prices.

NEW ZEALAND TERRORIST ATTACK WASN’T GOLD’S PRIMARY DRIVER

Well, I’m sorry to be unkind, but that is very much not the case. Perhaps there was a small amount of temporary noise from the terrorist attack, but this was a tiny fundamental. You have to look at correlations between asset classes to gauge what is moving the markets.

Today, we saw higher stocks, higher metal prices, a weaker dollar, and lower oil prices. All these issues point to falling yields in bonds, nothing more.

Gold might like chaos, but it loves a weaker USD more, mainly because it trades around the world in dollars. What may have confused some investors was seeing the haven Japanese yen (JPY) rising against the dollar.

However, looking at a cross-section of G10 currencies, it is evident that the moves are almost identical in USD denominated majors. This eradicates the argument for haven flows.

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Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

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