Bullion is benefiting from rising concerns over global growth. Friday’s weak US job data was a catalyst which pushed the metal through the psychological level of 1300. With sluggish growth and cautious stances from major central banks and weak stock performance, gold has a lot to gain as traders seek its safe-haven status in a world full of uncertainties. We could see the precious metal resume its upside as buyers come back.
On the technical side, the break of 1300 is a strong signal for a upside momentum. 1310 is the next target for buyers. On the downside, 1291.50 is the immediate support to monitor.
The sentiment-price correlation chart shows the sentiment stabilising in the negative territory, which could suggest that the price may have bottomed out.