Gold at New Record High, breaks $1’470
Spot Gold (XAU/USD) rose to a new record high Friday as a dollar slide, together with continuing concerns over euro zone debt and unrelenting tensions in the Middle East supported metals and commodities. Silver (XAG/USD) is also well bid Friday, as it rose to multi-year or even decade highs.
The weaker dollar is the main driver for gold prices, which has been hurt by a budget deadlock in the US and therefore supporting the higher metal prices. This new record high is the latest of a series of peaks since the beginning of the year pushed by political turmoil in the Middle East and Japan’s disaster as gold continues to benefit from its ‘safe-haven’ status.
Spot gold has peaked at $1’471.40 so far and is up around 0.80 percent. RTFX TraderTip daily scenario for XAU/USD suggested a rise up to $1’471.52, while for the month, the scenario suggests it may extend higher as far as $1’526.30 as declines find support at $1’406.47. RTFX Trend is bullish on XAU/USD since the 5th April, while XAG/USD is bullish since the 29th March, with a 6.51 percent gain recorded so far.