Gold touches five-week high. Six reasons for the rally

Gold up $7 as winning ways continue

Gold prices touched their best level since April 24 on Wednesday.

Here are a few factors behind the rally:

1. General US dollar weakness, which is partly due to:


2. Speculation that the June 14 decision will be a dovish hike. Rates are likely to rise but the statement could say that a pause is likely unless growth and inflation rise.


3. Chinese yuan instability could be adding to demand for safe havens


4. Slow Eurozone inflation diminishes the chance of higher European rates


5. Momentum. Does that count? Gold has been in a steady climb since May 10


6. Technicals. The gold rally originated from the trendline since January and it accelerated after breaking the 61.8% retracement of the April-May drop

Gold touches five-week high. Six reasons for the rally
Gold touches five-week high. Six reasons for the rally
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