In a time of true uncertainty, gold is proving to be the ultimate store of value. It’s up $38 to $1945, which is the highest in a year.
Technically, this is a break of a major consolidation pattern and it’s a clear break to the upside now, with the one-year high giving way.
What does worry me is that Russia has enormous gold reserves and might have to tap those if it’s cut off from the global financial system.
For now though, all the money is flowing into gold and that can become a self-reinforcing pattern, especially with the technicals aligned. This is the kind of moment the gold bulls have been waiting for.
This article was originally published by Forexlive.com. Read the original article here.