Gold is up by $42 so far today
Gold is up by a whopping 2.5% on the day as it continues to break to the upside after a key technical break above the $1,600 level seen towards the latter stages of last week.
With bond yields continuing to sink lower amid risk aversion in the market, gold stands heads and shoulders above everyone else in trading to kick start the new week.
From a technical perspective, there is little in the way stopping a move towards $1,800 potentially next but as we all know, the market doesn't move in a straight line.
Profit-taking activity and some ebbing in coronavirus fears could help see a healthy retracement in gold but as long as major central banks are going to continue with persistent monetary easing, gold can always rely on that for some support in the long-run.
Much like how it isn't the time to be catching the falling knife with the aussie and kiwi, this isn't the time to be calling a top in gold just yet.
Watch out for 10-year Treasury yields as it closes on the 2016 low at 1.318%. A further break below that could trigger added risk aversion in the sessions ahead, should the current mood keep up over the course of the week that is.
