Gold climbs on lower rate speculations

The gold price has returned to renewed historical highs, which are now above $2,970 per troy ounce. On the tech analysis side, we see a typical resumption of growth after a corrective pullback. As we repeatedly noted earlier, the potential target of this growth impulse looks like the area of $3,190. A more distant growth target looks like the area of $3,400.

Not typical in this case is the fact that the increase in the price of gold occurred sometimes simultaneously with the strengthening of the dollar and sometimes together with the fall in the stock markets. The only reliable correlation we see with gold is sentiment on global monetary policy. Economic weakness and slowing global inflation are fuelling the rise in the price of gold.