Golds surge take out several resistance levels

While energy prices have slumped, precious metals have emerged as major winners following the US elections. The powerful combination of falling energy prices, easing inflation and interest rate concerns, and declining Treasury yields and the dollar has forced recently established speculative shorts to cover. Over the past two months, ETF investors absorbed a significant part of the gold selling from hedge funds, which have now returned to the buy side amid an improving technical and fundamental outlook. Gold has broken through several resistance levels, including the downtrend from August at USD 4,032 with the next major hurdles at USD 4,186 and USD 4,225. Some consolidation appears likely first, not least because the oil price slump has so far been driven more by hopes of a Middle East peace deal than tangible progress towards one.