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Another record high for Gold as an inflation and haven hedges outweigh cost of carry

Gold has just now hit a new record high above $2,755. The move higher is taking the metal ever closer to the noted potential technical resistance level, in place around the $2,760 mark. The fact that Gold is rising with US yields this morning is clear testament to its status as an inflation hedge and haven from risk, even as US yields increase the cost of holding the metal. The haven status is clear from all that is going on in the Middle East right now and we are seeing significantly increased levels of physical metal buyers continuing to pile into this at any price it seems. Perhaps that will come unstuck at some stage, especially if that cost of carry becomes really punitive. However, do not forget; that when it comes to physical gold holdings that is funded in cash and hence it does not incur a carry cost as such. Gold just hit a new record at $2,755.94. It is currently trading at $2,755.70

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