After yesterday’s slight drop, gold is back at it again as it looks to make it seven out of nine days of gains in trading today. The run higher in the last two weeks has been a rather technical one. That considering the rebound off the 100-day moving average (red line) continues to run its course:
Gold (XAU/USD) daily chart
Going by the chart above, gold looks poised to at least test the upcoming trendline resistance (white line). That level is seen roughly near $2,048 currently. That will be a key technical evaluation of the latest bounce we’re seeing.
So far this week, the sluggish action in the bond market and a more tentative dollar is helping gold get settled ahead of month-end. But I’d still argue that it’s more so about the technicals for gold at the moment.
And in the bigger picture, we can see that the pattern of lower highs, lower lows is forming. That could be what stops the upside momentum in gold in its track as we get into March.
As impressive as it is that gold is still above $2,000, it hasn’t been that good a start to the year. Gold ended January down over 1% and including the gains today, it is only flat so far in February.