The gold price has hit a 5 year high, in line with a bullish picture for commodities as a whole, according to George Davis at RBC Capital Markets.
The Bloomberg Commodity Index has seen a strong upward breakout this week targeting 80.50 from the one year low support level of 76.27. Of all the commodities, only base metals have a relatively fragile outlook. Gold has now exceeded $1400, the highest level since 2014 with target levels of $1421 and $1434, with resistance standing at $1488. Current central bank policy stances bode well for further gains, says Davis.