THE NEXT LEG OF GOLD RALLY GOLD needs to top $1,515

It has been a mixed year for gold as after reaching $1,580 in early September, prices corrected to $1,450 on optimism of US-China trade deal. Equity markets are trading at record highs, which again means that funds are flowing into stocks, as investors are in risk on mode. The US dollar is getting stronger, another headwind for gold.

With fears of a global recession abating and treasury yields reversing course, investors seem to have lost momentum and has crashed from $1,580 to sub $1,500 levels. Now gold is near $1,450-$1,440, which is its support zone.

In spite of the recent correction, performance for 2019 is still positive and bullish picture has not deteriorated from medium to long term point of view.