Gold Approaching Four-Year-Highs
Gold has ascended more than 8% since mid-December, as the U.S. Dollar has underperformed and investors looked for protection against a possible rekindling of inflation. The dollar’s fall has come amid the general belief among analysts that both the ECB & Bank of Japan are moving towards cutting monetary stimulus. U.S. Treasury Secretary Steven Mnuchin appeared to welcome the weakness in the USD on Wednesday, at the annual Davos summit.
Managed-money long positions on Comex Gold have more than doubled since the middle of last month.