In the early morning trade, June gold has bounced up nicely from its 200-day moving average and is currently trading at $1,277 an ounce. Furthermore, it looks like gold might have found more support from news that India might consider a reduction on their import duty on gold from 10% to 4% along with the World Gold Council news of rising global gold demand. However, gold might have a challenging time maintain momentum with the strong uptrend is the US dollars and it looks like major capital is flowing into equities.
If we take a quick look at the daily June gold chart, you’ll see back on March 1st that gold broke through its long-term bullish trend and has yet to regain any type of steam or get back to a bullish trend. It looks like overnight the shiny one got a nice pop off its 220-day moving average and really need to get back and close above $1,300 an ounce. I have highlighted these levels below on my RJO Pro daily June gold chart.
Gold Jun ’19 Daily Chart