We tapped out a new year’s high of 1748.60 this morning and EU concerns over the weak peripheral countries are keeping the shiny stuff in favour with tick backs now largely viewed as buying opportunities .
Asian demand is continuing to strengthen despite the end of the Chinese new year last week ,and Futures and ETF holdings are continuing to rise.
China bought almost double the tonnage in Gold last year over 2010, and its demand looks pretty insatiable as it continues to diversify its FX holdings which are the world’s largest .
Although China has been the largest producer of Gold for the last 5 years, it’s needs remain high as domestic and Central bank demand absorbs all it produces.
All this is pointing to further rises for Gold, but be wary of a tick back as January produced one of the strongest moves for decades.
Next levels worth keeping an eye on are tech resistance up around 1756 and 1763, with support down at 1714 and 1703
Gold’s currently around 1746.50
