Gold’s price surge to highs of 2012

China, on the other hand, has proposed its new National Security law which would allow Beijing to control Hong kong’s legal system, which is causing growing tension between U.S. & China adding to the market’s uncertain outlook. The negative real yields signal a bearish sentiment for the Global economy’s outlook, which is acting as a cause of the yellow metal’s continuous gain in price. As investors are finding Gold much more attractive than Treasuries, which would be giving a negative return. The latest U.S. CFTC reports also suggest that Long position on Gold has significantly increased among large Institutions. Goldman Sachs is already forecasting that Gold will hit $2000 an ounce, while J.P. Morgan Chase & Co. said to stick with bullion as it is most leveraged to a low real yield environment.

Technically, the first biggest barrier for Gold would be to get above the $1765 region mark. As there has been quite a big resistance around the region in recent days. Once we see a break above, we can easily target the $1800 handle as there are no major price points in between. The Bollinger bands on the daily time frame are also becoming narrow, which signifies a price break above or below, with fundamentals indicating a price surge in this case.