Gold News: Gold A Refuge from Volatility

Gold News

Investors have looked back on the gold as a safe haven from which investors protect their investments against turbulent volatility.

First of all, a definition of Decoupling: Decoupling takes place when two different asset classes that typically rise and fall together move in opposing directions. The occurrence of returns on asset classes diverging from their expected or normal pattern of correlation.

If someone was thinking about investing in a decoupled way then you should consider the following graph before you do so.

Gold As a refuge from Volatility

As we can see, the demand is showing a bullish signal while the supply is decreasing.  Actually, the demand in the 4Q increased 4% while the supply decreased 10%. Within demand, strong growth in investment and central banks.

As a consequence, if the tendency continues in this way, it is expected to increase the price of gold.

Wrap Up

Currently, gold is news because equities are falling hard and investors seek gold as a refuge.

Attempts to break the resistance of gold in USD 1208 suppose question its downtrend since 2013.

The market, in the case of the graph for the S & P, has long since broken the upward trend that began in 2012. In the end, gold honors its role of refuge from the uncertainty.

The price has been rising for several consecutive days. So what is the standard?

Of course the metal is clearly overbought and it’s always tempting to close long after 10 days of gains. Surely this is what you do short-term traders.



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