A combination of a weak dollar, worse than expected US housing data and the ongoing crisis in Syria has pushed gold above the $1,400 level. According to Saxo Bank?s Ole Hansen, there are now two key figures investors need to watch out for; $1,415 and $1,416. Ole explains that if the commodity travels to $1,416, it technically re-enters a bull market. This is largely dependent on what happens with regards to tapering in the US. On Friday, a sharp drop in US home sales prompted investors to re-think the potential timing for the unwinding of US stimulus. But many analysts believe that markets have now started to factor in tapering, and as a result, the positive sentiment towards gold is growing. Earlier this month, billionaire investor, John Paulson, dramatically reduced his exposure to exchange traded products by 53%, read more about his decision to get out of gold here: http://www.tradingfloor.com/posts/sell-which-boost-gold-price-1573980612
↧