It has been for a long time that we are seeing a structural movement in the bullion price with investors continuing to increase the percentage of yellow metal in their portfolio. The resistance level of $2,000 was disintegrated and the prices gained another $30 with gold achieving new records almost every day.
Technical levels are losing importance in this scenario, which is clearly dominated by a huge hunger for bullion. Investors are not considering technical indicators or the overbought scenario as they are simply buying gold hoping in some cases for quick gains, in others to hedge in case of further corrections of stocks and – particularly – in case of a significant depreciation of the US Dollar.
