Gold began the last leg of this rally exactly a week ago when on Thursday, April 15, gold futures opened at $1736 and gained $28 on the day.
This most recent rally in gold began at the end of March when market participants took pricing to approximately $1670, creating a double bottom from the lows seen on March 8.
The root of many issues stems from an economic contraction in certain countries worldwide, as well as a major uptick in Covid-19 infections in certain global hotspots.
The ECB president did note that there is a chance for growth to resume in the second quarter.” This according to Anna Golubova of Kitco News.
Considering that India is the second most populated country in the world, this number takes India’s collective Covid cases to 15.9 million.
equities also tumbled today as market sentiment focused upon Biden’s new tax proposal to raise the federal income tax for those individuals making over $1 million per year to almost 50%.
While we could see a consolidation at these new price levels, the probability of gold entering another corrective period based on the current fundamental events which have fueled the recent rally are low.