Gold Breaks 6-Year Downtrend On Safe Haven and 50% Surge In Chinese Demand

//Gold Breaks 6-Year Downtrend On Safe Haven and 50% Surge In Chinese Demand

Gold Breaks 6-Year Downtrend On Safe Haven and 50% Surge In Chinese Demand

Gold prices break 6 year down trend on safe haven demand (see charts)

Chinese gold demand set to surge 50% to 1,000 metric tonnes

Chinese demand for gold bars on track to surge more than 60 percent in 2017

Geopolitical risk internationally leading to safe haven demand

UK election, terrorism and rising tensions in Middle East supporting gold after attacks in London and attacks in Iran today

Gold is 12.5% higher for year and outperforming stocks (see table)

Gold prices have broken out above the six year long downtrend (see charts) due to a 50% surge in Chinese demand and increasing safe haven demand internationally.

Gold Breaks 6-Year Downtrend On Safe Haven and 50% Surge In Chinese Demand Gold Breaks 6-Year Downtrend On Safe Haven and 50% Surge In Chinese Demand gold prices technical 2017 1Goldchartsrus.com

Gold is now 12.5% higher year to date in dollar terms and technical analysts say that the breakout is important technically. When combined with the very uncertain geo-political and positive supply demand backdrop, it is a bullish development.

Gold jumped more than 1% yesterday on concerns of conflict in the Middle East after the Saudi coalitions aggressive move against gas rich Qatar and Iran. Today there have been terrorist attacks in the Iranian parliament and at least seven people have been killed.

Gold Breaks 6-Year Downtrend On Safe Haven and 50% Surge In Chinese Demand Gold Breaks 6-Year Downtrend On Safe Haven and 50% Surge In Chinese Demand gold prices safe haven 2017Finviz

Gold likely also received a safe haven bid due to heightened terrorism concerns after the terrorist attacks in Londonand the possibility that a left leaning Labour government under Corbyn may come to power in the UK.

Chinese gold demand has increased very substantially again and Chinese gold imports are seen jumping 50% back to 1,000 metric tonnes as reported by Bloomberg.

The world’s biggest gold market looks set to increase imports through Hong Kong by about half this year as Chinese investors seek to protect their wealth from currency risks, a slowing property market and volatile stocks, according to the Chinese Gold & Silver Exchange Society.

Chinese demand for gold bullionbars is surging and is on track to surge more than 60 percent in 2017.

Gold Breaks 6-Year Downtrend On Safe Haven and 50% Surge In Chinese Demand Gold Breaks 6-Year Downtrend On Safe Haven and 50% Surge In Chinese Demand chinese gold demand 2017Goldchartsrus.com

Gold isnow just a fraction from its highs for the year so far and the 12.5% gains means that gold is outperforming most international stock indices. The S&P 500, the Euro Stoxx 50 and the Nikkei are just 8.7%, 8.4% and 4.5% higher respectively (see table above).

Gold Breaks 6-Year Downtrend On Safe Haven and 50% Surge In Chinese Demand Gold Breaks 6-Year Downtrend On Safe Haven and 50% Surge In Chinese Demand 1000x 1Bloomberg

It is also breaking out from the long term downtrend line left from the bear market as noted by many technical analysts and Bloomberg today:

Gold is breaking out of a six-year slump as investors search for safe havens during a period of global upheaval and bets that historically low U.S. interest rates will endure. After breaching a six-year downtrend line, gold is at the highest level since Nov. 4, and has advanced 12.7 percent this year. An uptick in bullion imports in China, as a hedge against currency risk, and a tepid pace of U.S. monetary tightening could fuel the next leg-up in the rally, say analysts.

After breaking the 2012 downtrend at $1,290, the next level or resistance is the psychological level of the round number $1,300 per ounce and above that the next level of resistance is $1,350 per ounce.

There is a risk of gold weakening before and on the day of the Federal Reserve interest rate announcement on June 14. However, the risk posed by the Fed tightening is exaggerated and even if the Fed does tighten by a meager 25 basis points, there are increasing doubts as to whether there will be further interest rate rises due to fragile U.S. and global economic growth.

News andCommentary

Gold Makes Run Toward $1,300 as Risk Flares From U.K. to Mideast (Bloomberg.com)

Gold holds near 7-mth high, political worries buoy safe-haven demand (Reuters.com)

China’s gold imports seen jumping 50% as haven demand booms (Bloomberg.com)

CFTC Finds Trader David Liew Engaged in Manipulation of the Gold and Silver Markets (CFTC.gov)

Top overseas footballers seeking euro pay packets (FT.com)

Gold Breaks 6-Year Downtrend On Safe Haven and 50% Surge In Chinese Demand Gold Breaks 6-Year Downtrend On Safe Haven and 50% Surge In Chinese Demand gold breaches key level

Gold Prices Break Through a 6-Year-Long Downtrend Line (Bloomberg.com)

Gold Breaks Major Resistance Trendline (ZeroHedge.com)

Platinum shortage could throw a wrench into a class of green cars (BusinessInsider.com)

Raoul Pal Slams Bitcoin: It’s Not The Store of Value People Thought It Was (ZeroHedge.com)

Saudi Dispute With Qatar Has 22-Year History Rooted in Gas (Bloomberg.com)

Chats by Ex-Deutsche Bank Metals Trader Reveal Spoofing ‘Tricks from the Master’ (Bloomberg.com)

7RealRisksBlogBanner Gold Breaks 6-Year Downtrend On Safe Haven and 50% Surge In Chinese Demand Gold Breaks 6-Year Downtrend On Safe Haven and 50% Surge In Chinese Demand 7RealRisksBlogBanner

AvoidDigital& ETFGold KeyGoldStorage Must Haves

Gold Prices (LBMA AM)

07 Jun: USD 1,292.70, GBP 1,001.07 & EUR 1,146.62 per ounce

06 Jun: USD 1,287.85, GBP 997.31 & EUR 1,144.77 per ounce

05 Jun: USD 1,280.70, GBP 992.41 & EUR 1,136.88 per ounce

02 Jun: USD 1,260.95, GBP 980.39 & EUR 1,123.88 per ounce

01 Jun: USD 1,266.15, GBP 984.81 & EUR 1,128.01 per ounce

31 May: USD 1,263.80, GBP 987.79 & EUR 1,129.96 per ounce

30 May: USD 1,262.80, GBP 982.46 & EUR 1,132.23 per ounce

Silver Prices (LBMA)

07 Jun: USD 17.60, GBP 13.64 & EUR 15.71 per ounce

06 Jun: USD 17.56, GBP 13.61 & EUR 15.62 per ounce

05 Jun: USD 17.52, GBP 13.58 & EUR 15.59 per ounce

02 Jun: USD 17.19, GBP 13.37 & EUR 15.33 per ounce

01 Jun: USD 17.13, GBP 13.33 & EUR 15.26 per ounce

31 May: USD 17.31, GBP 13.48 & EUR 15.43 per ounce

30 May: USD 17.27, GBP 13.42 & EUR 15.49 per ounce

Recent Market Updates

Deposit Bail In Risk as Spanish Bank’s Stocks Crash

Terrorist attacks see Gold Stay Firm

Trust in the Bigger Picture, Trust in Gold

Trump, UK and the Middle East drive uncertainty

Is China manipulating the gold market?

Why Sharia Gold and Bitcoin Point to a Change in Views

Bitcoin volatility and why it’s good for gold

Silver Bullion In Secret Bull Market

Should I Invest My Fortune in Gold? Inaugural Lecture by Dr Brian Lucey

Gold and Silver Bullion Now Treated As Money In Arizona

Manchester Attack Sees Asian Stocks Fall, Gold Firm

James Rickards: Gold’s Decisive Turn Around Next Stop Is $1,300 Or Higher

Gold and Silver Bullion Coins See Sales Explosion In UK On Wave Of Political Turmoil

Access Award Winning Daily and Weekly Updates Here

The post Gold Breaks 6-Year Downtrend On Safe Haven and 50% Surge In Chinese Demand appeared first on GoldCore Gold Bullion Dealer.

Gold Breaks 6-Year Downtrend On Safe Haven and 50% Surge In Chinese Demand Gold Breaks 6-Year Downtrend On Safe Haven and 50% Surge In Chinese Demand   ptq

By | 2017-06-07T22:34:28+00:00 June 7th, 2017|Blog|0 Comments

About the Author: