Gold investors have been waiting for this, The metal has been trending lower since August and after rebounding in April, it ran into resistance around $1,780. That put a halt on the rally.
Now that resistance has been broken and a big move higher has been made.
The sellers who created the resistance have left the market. They have either finished or canceled their orders. That’s why gold made a big move higher. With this supply out of the way, the buyers had no choice but to pay higher prices.
There’s a good chance it continues. With inflation here and a potential energy crisis on the horizon, a flight to safety has begun.
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One reason why the flight to safety has begun and gold is moving higher is the weakness in Apple Inc. AAPL.
The company reported earnings that were well beyond expectations, but the stock hit resistance and then reversed. It has been trending lower since.
Some investors believe this is a bearish sign for the market. Apple is the biggest stock in the S&P 500. It led the market up and it may lead the market down.
These investors are buying gold because if the stock market moves lower, there’s a good chance gold moves higher.
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