Gold very likely to retest the 2016 high of US$1,375
TENSIONS are rising once again in Korean Peninsula after North Korea recently launched a missile over Hokkaido and tested a Hydrogen Bomb that is five times as powerful as the atomic bomb dropped in World War II.
As the war scare loomed, gold and silver acted perfectly as safe haven assets where gold closed substantially above the US$1,300 psychological resistance and silver above the US$17.00 psychological resistance in August. More importantly, there seems to be a significant seismic shift in sentiment in gold and silver to the upside from the chart perspective.
Gold has finally ditched the downtrend since 2011 after finding a bottom in December 2015 which we believe is the eight-year cyclical low. The key turning point for the shift in sentiment is shown by the monthly close above the long-term downtrend line since 2011. That coincided with the much-needed bullish close above the psychological US$1,300 resistance at the end of August 2017 with price closing at $1,325.
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