Chart of the day: Gold glistens in commodities gloom
Questions abound over just what is going on with gold. Concerns about deflation and slowing global growth do not necessarily augur well for the precious metal. Nor does a strengthening US dollar, which has an historic tendency to dent all commodities on the way up. Gold, however, is proving remarkably resilient. It has maintained its grip on US$1,200 an ounce and, in euro terms, has just broken above resistance that built last year at €1,000 (HK$9,185). In the near term, gold now looks overstretched, but from a medium-term view, gold's relative momentum within the commodity universe has become markedly more positive.
David McBain is a technical strategist at Absolute Strategy Research