Gold Price Poised to Knock Out Another 7-Year High: 3 Reasons Why

CNN--"Bullion is outperforming the U.S. stock market this month. There are at least three reasons why the precious metal is likely to extend its rally for the remainder of the quarter. The renewed urgency to buy gold follows a worsening coronavirus outbreak that has infected thousands of people across at least 19 countries. After initial hesitation, the World Health Organization (WHO) has officially declared the coronavirus outbreak to be a global public health emergency....The flight to safety has been accompanied by sharp declines in global equity markets. Following a brief pause, stock prices are plunging again over fears of global pandemic. In an environment dominated by risk-off sentiment, gold and other safe havens are likely to rise in value. Gold's rapid ascent is also being aided by technical traders who see renewed opportunity in longing the precious metal....The analyst believes prices are only now breaking out from a mid-cycle consolidation, which puts $1,700 on the immediate horizon. Bullion has already pushed north of the 10-period moving average, giving it a bullish bias over the short term. A takeout of $1,600 leaves the seven-year peak of $1,619.60 exposed."