Gold Channeling Back Up to $1,350Posted 03/22/2019 9:10AM CT |
In the early morning trade, April gold is currently trading in the green extending this week’s rally and currently trading at $1,311.8 a troy ounce. The interesting thing about gold today is how it’s standing up to the strength of the dollar as the dollar is forging fresh overnight weekly highs. The shiny one is showing great resiliency as its obviously benefited from the Feds decision this week not to raise rates throughout 2019, which came to a surprise to most. As gold and silver seem to look like they’re back in bull market territory, the June US dollar forged fresh new highs and gold acting more as a currency might have some challenges extending its rally. However, I must admit it’s going to be hard to fade this chart and the fed’s decision to hold off on raising interest rates in 2019.
As I mentioned above, for the gold bears, it’s going to be hard fading this chart, so let’s take a quick look at the daily April gold chart. I highlighted the double bottom below and as you can see in January and March the gold market rejected going below $,1280 an ounce and both times to rebound above the $1,300 handle. Furthermore, I highlighted how gold is currently channeling up and looking likes it’s going to retest the February 20th high of $1349.8, so I do see a strong probability of gold trading back up to around $1,350 an ounce.
Gold Apr ’19 Daily Chart