In the early morning trade, February gold has slightly extended its week long bounce off the $1,200 an ounce handle and is currently trading back up at $1,232.3. The shiny one is starting to act like a physical precious metal market. Yesterday, gold saw a little lower price action in the face of declining equity markets along with rising anxiety and there was still no safe haven buying. Furthermore, you’re seeing gold up this morning during the midst of higher equity prices and a weaker U.S. dollar. With gold holding and rallying off the $1,200 handle last week along with strong retail gold demand out of China and India last night, we may see prices trade back up to the high on October 26th of $1,252.
If you look at the daily February gold chart, you’ll see that it’s fixing to break out to the up side again. Gold held onto the $1,200 handle which was also where a bullish trendline came in and rallied back up $30 an ounce or roughly 2.5%. Now if it can only break above the bearish trendline which I highlighted below, then it can rally up to the October 26th high or even up to its 200-day moving average of $1,282.2. I highlighted some key technical level below on my RJO Futures Pro daily February gold chart.
Gold Feb ’19 Daily Chart