What's Behind The Gold Rally
Naeem Aslam | Dec 29, 2021 01:54AM ET
The precious metal has been performing well over the last few days and has been able to hold ground above the crucial $1,800 mark, mainly because investors are using gold as a hedge against increased risk from the Omicron variant.
In addition, a fall in treasury yields has also supported gold prices. This is because a decline in treasury yields reduces the opportunity cost of holding the precious metal, making it more appealing to investors.
The below chart shows the resistance and support zones for gold price. From the chart, one can see that the price is in battle with the 50 and 200-day SMA currently shown in pink and green. If the price can move above these averages, we are likely to see gold price reaching higher highs.
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