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Gold Bid to a New Record High

PRECIOUS METALS
  • Spot gold getting a bidtone in recent trade, benefiting from the fade off highs for the USD as well as some safe haven flow off the back of earthquake in NY headlines that are working against the post-NFP market reaction. USGS gauge the earthquake at a 4.8 magnitude, with the epicenter 3 miles north-east of Lebanon in New Jersey, around 50 miles due west from Manhattan.
  • Middle east tensions remain front-and-centre following the sharp market fallout yesterday, with latest comments from Hezbollah head stating that the strike on the Iranian consulate in Damascus is a "turning point". While expected, the comments underscore the fraught nature of relations in that part of the world.
  • Spot gold now clear to new alltime highs, notching up gains of close to $30/oz on the day. Latest extension high puts prices back into technically oversold territory on the 14-day RSI - but that's been no barrier to the persistent rally in precious metals in recent weeks.

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