Gold is 2016s most beloved asset, CNN confirms

The continuing collapse in oil prices slammed stocks again Tuesday, with the Dow Jones down more than 300 points.

In contrast, gold held its ground once more, slipping slightly to just under three-month highs after touching $1,131, its strongest price since Nov. 3. Silver, meanwhile, was trading near $14.33.

Gold has paused to consolidate near $1,128 just below its 200-day moving average near $1,132, Colin Cieszynski of CMC Markets told MarketWatch, adding that the next resistance level for gold would be in the $1,150 to $1,155 area.

Next target $1,150 or above: It is perfectly possible that it will move towards $1,150 and then it will depend on the equity markets, Julius Baer analyst Carsten Menke told Reuters. “Clearly this is an environment that is supportive for gold in the short term.”

So much so that it could even go higher. Around $1,160 is around my objective on the upside, trader Jim Iuorio told CNBC. Weve got negative rates all over the place. It costs less to hold gold when interest rates are as low as they are. It seems like the 10-year yields here are just going lower and lower. The stock markets getting hit; it seems like an unsafe place to be. Gold is getting a little bit of its shine back.

ETF racks up hot streak: Gold ETF investors apparently agree with Iuorio, with holdings in the largest such fund, the GLD, gaining for the 11th straight session, the longest streak in three years. It looks like there’s some flight back into safety, Phil Streible at RJO Futures said. Gold is getting a nice bid as ETF holdings are near a three-month high.

Other major gold ETF’s also are seeing strong inflows. Its clear that the precious metals appeal as the ultimate safe haven now extends well beyond the universe of dollar-doubters and doomsayers otherwise known as gold bugs, Bloomberg admitted.

Gold outpacing equities: With January now over, CNN also joined the chorus of media organizations that have been forced to concede that the yellow metal is a winner so far this year. With about a 6% gain so far, gold is 2016s most beloved asset, its headline read.

As we have seen stock markets around the world tumble dramatically, the need to protect capital has increased and gold has benefited from that, Juan Carlos Artigas of the World Gold Council told the network.

A good shot gold hits $2,000: In contrast to most commodities such as oil, which have struggled amid the global economic slowdown, gold has thrived. Gold is the winner of that game because it has the least industrial use so its least affected by the global slowdown, added Axel Merk of Merk Investments.

CPM Group Jeff Christian is among those experts who think that gold remains in a long-term secular bull market despite the bear stretch of the past several years. He now thinks the bottom is here for gold and silver. Joe McAlinden of McAlinden Research recently weighed in with another bullish forecast. I think gold is going to be heading back to where it was before and then possibly to new highs, he told Bloomberg. There’s a good shot gold gets back to $2,000 or hits $2,000 in the next couple of years. I’m a longer-term investor by and large.

For short-term investors, golds resurgence in 2016 is a reason for optimism. For longer-term investors, the picture looks even brighter as the economic recovery that was supposed to be taking shape has now given way to China’s sputtering economy and plunging oil prices both of which suggest deflation is taking hold. With talk of negative interest rates on everyone’s lips, the case for gold is only getting stronger as the year progresses.