Gold bulls able to rumble once more?

Gold is up over 1% on the day and beginning to shut again in on testing the $2,600 mark as soon as extra. The bounce right here comes as the dear metallic seems to be to snap a run of six straight days of losses, after having ran right into a take a look at of its 100-day transferring common (crimson line) final week:

For some context, it was the primary time since February that the dear metallic even touched the important thing stage. And even when you think about the ~9% drop from the highs on the finish of October, it is however a light correction to the unrelenting gold rally to this point this yr.

Nonetheless, a significant technical stage continues to be a significant technical stage regardless. This was highlighted in my put up final week right here.

And it seems to be like gold patrons are surviving that take a look at in not letting the pullback run a lot deeper than it might on a break of the important thing stage above.

The bounce to this point is first rate however not precisely all too convincing although. It’s nonetheless operating into some potential resistance within the type of the 23.6 Fib retracement stage of the swing decrease this month, seen at $2,596.63. Including to that, gives layered round $2,600 provides to some short-term resistance across the present area.

So, patrons will nonetheless have some work to do. However the case of an early signal of a backside is a minimum of beginning to construct.

This text was written by Justin Low at www.ubaidahsan.com.



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