How are investors reacting to recent gold movements in the market?
*The Wall Street Journal, by Chris Dieterich, August 30, 2017
”Retail and professional investors are in sync with their bullish bets on gold, a sign that the precious metals can push to fresh highs.
Gold for August delivery rose 0.3% Tuesday to $1,313.10 a troy ounce on the Comex division of the New York Mercantile Exchange, following a 1.3% advance on Monday. The precious metal is at levels it hasn’t reached since last September, before Republicans took the White Hour and retained Congress. The election growth and prompted traders to dump gold.
Now, for the first time since June, both futures contracts and flows into exchange-traded funds are looking similarly supportive. Bullish futures positioning in gold has risen for six straight weeks, and the two largest gold ETFs have pulled in new money in each of the post two weeks, according to the Commodity Futures Trading Commission and Morningstar.
Investors big and small moving the same direction is an important step for prices to break out through key levels of resistance, market technicians say. Twice this year, gold’s charge higher was denied around the $1,300 level, but positioning is more bullish this time around.”
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