Gold Recovers After Weak Start to the WeekPosted 01/23/2019 9:05AM CT |
February gold started this week higher Tuesday, after trading up off a new recent low of 1276.0. The past couple weeks the gold market has seen sideways trading, unable to break through resistance at 1298.0. Although this recent pull back from resistance has damaged the chart technically, pullbacks should be supported with demand from value buyers. Recent strength in stocks and the U.S. dollar has pressured gold, stalling its trend higher. Looking at a U.S. dollar chart coupled with U.S. scheduled data this week, we could see a possible pullback which would be supportive to gold. Tuesday’s recovery off the lows was brought on with increased volume and open interest which shows demand interest at what is perceived as valuable levels. With that said, a break of the 1276 low along with pressure from outside markets would decrease demand and move support down to 1265.0. Trade through resistance at 1298.0 would continue the trend higher. Look for a re-test of the low this week with positive trade after if the market can hold that level.
Gold Feb ’19 Daily Chart