Gains from December low top $200 or 20%
by Frik Els
Gold’s 2016 rally gathered momentum on Thursday with the metal touching an intra-day high of $1,261.30 an ounce, up nearly $20 or 1.6% from yesterday’s close.
Gains in Comex futures for delivery in April, the most active contract, came in heavy volumes of more than 17 million ounces by midday, already surpassing the daily average.
Today’s trading also pushed the gold market into official bull territory – defined as a 20% move from a low. Gold touched a near six-year low of $1,049.60 December 17. The intra-day high on Thursday constitutes a 20.2% or $211.70 jump from those levels.
Nowhere is the change in sentiment more evident than in the physical gold-backed exchange traded funds industry.