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Fan Yang

Gold shines as markets go all red

Stock markets around the world are sliding and gold is gaining from safe haven flow. Here are screeshots from marketwatch.com.

US Markets:


Asian Markets:


European Markets

As you can see its all red. Gold and silver on the other hand are gaining because of their safe haven status. Let's take a look at Gold (XAU/USD)

XAU/USD Daily Chart 6/16

(click to enlarge)

Gold broke into new highs on the year as it breached 1300 during early 6/16 European session. We might see some near-term pullback in the US session, but we should be mindful of an intra-session pivot at 1290 as possible support. 

With gold above 1300, there is just one more hurdle to cross - a falling trendline seen in the weekly chart. After that, it opens up the 1440-1450 support/pivot area, as well as beginning of the falling channel that XAU/USD broke above earlier in the year. 

Gold (XAU/USD) Weekly Chart 6/16

(click to enlarge)

If there is some volatility around the falling trendline and we see gold retreat, I think it should still be anchored above 1250 if risk aversion persists in the global markets. 

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