 Hello, welcome to this week's CMC Markets Commodity Snapshot with myself Jasper Lawler. Now we're going to be looking at the price of gold, it just broke out to two and a half month highs and so there's been a lot of safe haven flows into the precious metal. The Federal Reserve just had their meeting, sent the dollar lower, so there's a few catalysts for a move higher in gold but we want to see whether this move that we've seen today is sustainable or maybe if we're due for a pullback. So as I mentioned, one of the driving factors has been a big sell-off in equity markets this year. Gold is the traditional safe haven, so we've seen flows into gold funds and into the precious metal itself. And so added to that, we've just had the Federal Reserve meeting the first one of 2016. The Fed was slightly more dovish than expected, so maybe less interest rates, interest rate hikes expected this year. That would be supportive of gold and any other asset class that's personally denominated in the dollar and also that doesn't yield any return since interest rates are going to be lower, there's less benefit to holding those interest-bearing assets. Now I'm going to show you the daily candlestick chart momentarily but I do want to first just look at the context from where we're coming from here with the weekly chart. Now you can see that we fail to really sustainably break below this first low on this weekly chart. These lows that we tried to put in through the end of last year didn't really see a sustained break lower and now we find ourselves higher. Now I think one of the things we can look at as a reason for this is that since the summer China have been reporting how much gold that they've been accumulating reserves and it's increasingly obvious that China are just continuing to buy gold and it's hard to see how gold can see a really sustainably big move lower when you do have this sustained reserve collection. And so then building on that why is China doing that? It's because they want to establish themselves with you know in terms of political clout in the world and so if we look at the statistics for how many tons of gold China have at the moment they have 1.7 million tons the US has 8.1 million so they've got a fair way to go in terms of how much gold they need to add before they you know considered a rival global power in terms of gold with the likes of the US. So now looking at this daily candlestick chart you can see in a bit more detail these pushes through that we tried to make in December, November, December and then early January failed to do so. We pushed held that support of 107.2 and we've rallied straight up over the 50% retracement of that decline that started in October and so now we're running into a bit of a resistance from this this inclining upwards trend line and the 200-day moving average just above. So potential here from a bit of a pullback it's not been a really parabolic move higher off the lows it's been more of sort of wavy steady move and so we could you know there is scope in this kind of 1130 kind of vicinity to see a bit of a pullback perhaps towards that 110 which was there was ceiling to prices up until just a few days ago. So that's it for this week's CMC market squad snapshot we of course looking at gold you know the main considerations here are the US Federal Reserve how they hint at how many rate increases they're going to see this year and how that affects the dollar. Also how equity markets perform if we do see a big rally in equities gold is likely to underperform because we won't have that safe haven flow but also a background feature just these reserve accumulation from from China that could be a long-term support for the price.