In the early morning trade, gold is trading slightly up this morning and still trying to make is back up to the $1,600. As I stated above, gold is pushing higher even in the strength of the U.S. dollar. There’s still a risk on appetite with gold along with the stock market making another all-time high but watch if that doesn’t start to unwind with the U.S./China Phase I Trade Deal signed Thursday, senate just passed the USMCA, and now positive news from the EU overnight on trade talks. Furthermore, China’s economic data came in slightly better overnight, which can prevent gold from making it back up to the $1,600 handle as risk trades are taken off.
If you take a quick look at the daily February gold chart, you can clearly see that the shiny one broke above resistance on Christmas Eve and was back in bullish trend. However, the high it made might not be legit because that was off the knee jerk reaction from the Iran missile strikes in retaliation of our President killing their terrorist leader Qasem Soleimani. Even though gold is in an uptrend it can still pull back all the way back down to the $1,500 handle, which there is strong support. Therefore, is gold going to $1,600 or $1,500 first?