Technical Analysis

Gold creeps nearer to the 2018 highs in fifth day of beneficial properties

Gold up $three.50 to $1344

Gold continues to interrupt out from the consolidation sample that kicked off the month. It is up $three.50 to $1344 after hitting a recent 10-month excessive of $1364 in Asian buying and selling.

The measured goal of the 2 week back-and-forth is simply above $1350. That additionally highlights the 2018 highs close to $1365.

Gold up $3.50 to $1344

I consider we have entered the ultimate levels of the gold rally, not less than within the quick time period. It is rallied greater than 12% in a reasonably quick timeframe and the excellent news from the Fed is already in. There might be one other leg larger on a flare up in commerce however there is not presently a catalyst to interrupt $1365 and the technicals are robust.

From a risk-reward perspective, I see a great argument to maneuver to the sidelines now or above $1350. Once you see headlines like this, it is oftentimes a high:

Gold sentiment tweet

The hope within the story is that hedge funds start to pile into gold and spark a second leg. That is actually doable however I do not see the story in gold being compelling sufficient to drive it. Seasonally, the tailwind ends in March in order that’s one other factor to contemplate.

All that mentioned, if it might get above $1365 — particularly after a bigger correction — then there’s loads of room on the upside.


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