Gold futures on Comex bounced-off the strong support zone near $ 1205 levels and flew through the roof over the last hours, to reach the highest levels since May 2015.
Gold eyes Oct highs at 1228.10
Currently, gold jumps 1.88% to 1216.80, easing-off fresh nine-month highs posted at 1220.20. The bullion regained poise and flew through the roof alongside other safe-havens as an era of negative interest rates appear to have dawned across the financial markets, spooking investors big time as they scramble for returns on their investments and also to protect them.
Gold yields zero interest but, it’s not negative-interest bearing and therefore, remains underpinned.
The yields on the US treasuries, particularly the 10-year yields, dropped to the lowest since May 2013, down over 5%. Amidst market turmoil, the safe-haven gold remains heavily bid and emerged the winner among other safety bets such as the yen, CHF and euro.
Gold Technical Levels
The metal has an immediate resistance at 1220.20 (daily high) and 1228.10 (May 2015 High). Meanwhile, the support stands at 1200 (psychological levels) below which doors could open for 1195.72 (5-DMA).