Gold nears another big milestone in final stretch of the week

Gotta bring this out from the archives:

Gold had a bit of a rough time at the end of last month when broader markets in general were seeing corrective moves. But once again, the recovery has been nothing short of outstanding. Dip buyers were quick to arrest the shift in sentiment and we’re back to more bullish talk for gold.

Trade conflict and risk aversion continues to add to more factors that should benefit the precious metal. And that seems to be how things are playing out, a little too straightforward it would seem.

With major central banks still set to cut rates further and also still stocking up on gold supply, it’s hard to fight the bigger picture narrative in gold. However, this run higher since last year has been relentless. There’s really no point in which to catch a breath and now we’re closing in on the $3,000 mark just three months into the new year.

The major concern for me when it comes to gold is that we’re still yet to see a healthy correction since the break above key resistance above $2,075 last year. That’s a whopping ~45% gains without much of a check back. It does feel overdue to some extent. So as we approach another big milestone, are we going to see buyers engage in profit-taking? Or is this going to be just another blast through to the next leg higher?

This article was written by Justin Low at www.forexlive.com.