Gold hits fresh records

Gold prices were a touch softer in early morning trade. This follows Wednesday’s strong session which saw it hit a record intra-day high above $2,880 before pulling back to post a new all-time closing high just below $2,870. Gold has put in a terrific bull run since mid-December. This was when it fell below $2,600 following a sharp sell-off which saw gold lose 5% over the space of a week. That was the last time that gold suffered a significant pullback. Yet such pullbacks had been a feature of gold’s upside journey since April last year. It’s worth mentioning as gold is back into overbought territory, as measured by the daily MACD. Are gold prices about to slump? Who knows. But bullish traders may want to exercise some caution, at least until this ‘overbought’ condition moderates to a degree. Meanwhile, silver has given back yesterday’s gains, although it has enjoyed a very positive start to the year so far.