Gold on its way to best monthly run since 2012

Good time are back for Gold bugs.

Gold after finding support around, $1050/troy ounce area, not just rallied sharply it had a major technical breakout, which if held could mean further gain in yellow metal. Current risk aversion environment coupled with uncertainty over global monetary policy is fuelling the latest run in gold.

Investors have started shifting their expectations from US Federal Reserve from rate hike to possibility of rate cut. Introduction of negative rates by central banks has also been a boost for gold. Many fund managers point out to their aversion of holding to securities, which would reduce their invested amount at maturity.

After reaching around $1260/troy ounce last week, gold has undergone correction, however, it is important to note Gold has found support at the break out level, near the ceiling of previous downward sloping channel.

As of today, Gold is up 9.7% this month, if it succeed in holding onto gains, it would be Gold's best monthly run since January, 2012.

We at FxWirePro, fundamental remain bullish over Gold as we discussed in our previous commentaries over Gold.

Active call - Buy Gold @1200 and at dips with stop loss around $1180 area and target around $1350 area. $1230 and 41260 areas likely to provide key resistance.