Gold is trading at $1322, up 0.25% on the day as the selloff in technology stocks in New York last night has dragged global equity markets lower this morning, which has led to an influx of cash being invested in traditional assets like gold. While there is fear that the technology bubble is about to burst, we could see gold trade higher.
As Alastair McCaig stated on Tuesday, a standoff between Russia and the west over Ukraine is also encouraging traders to sell equities and buy safe haven products like gold. If political tensions rise again, it could drive the metal higher.
The US reporting season began this week, with JPMorgan Chase reporting weaker-than-expected earnings per share and revenue. The stock is trading lower on the back of this which may also accelerate the buying of gold.
Gold is finding support at the 50-hour moving average of $1315. The big hurdle to clear is $1334, which was the high before the selloff at the end of March.