Gold to Retest Yearly High

February 16, 2018 9:10AM CST

In the early morning trade, April gold has slightly extended its five-day rally that began back on February 12 and is currently trading at $1,356.5 an ounce. April gold is now currently trading at its highest level since January 25 and it’s the yearly high for the shiny one. Furthermore, April gold has the potential today for the biggest weekly gain in nearly two years as the bulls take complete control of this market. Wednesday’s Consumer Price Index (CPI) number came in better than expected with a reading of 0.5% against projections of 0.3%, which sparked inflation fears and sparked nearly a $40 rally in gold.

Let’s keep it simple and take a quick look at the daily April gold chart. Gold now looks prone to retest and possibly break out above the January 25 high of $1,370.5 and yesterday’s low of $1,350.0 will now be support, so a break below that will lead to a possible selloff to $1,340.0-$1,325.0 an ounce. I highlighted these levels below on my daily April gold chart. 

Gold Apr '18 Daily Chart

gold_apr18_daily_chart

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