In the early morning trade, June gold is up slightly and currently trading at $1,266.7. After gold held up earlier in the week and showed resilience, gold bulls have to be encouraged. In fact, the June gold market has only fallen 2.8% from its high it made 8 days ago. Also, gold probably found some new safe haven buyers as a US government shutdown due to budget deadlines returned to the headlines and now with this morning’s lower Q1 GDP numbers than originally estimated.
If you take a moment and look at the daily June gold chart, you’ll clearly see that gold is still in a shorter-term up trend or channel with it holding above its 200-day MA. If we keep things simple, a break above this week’s high 0f $1280.0 would leave gold prone to rally up to $1,300.0 to $1,325.0. If gold breaks below this week’s low of $1,260.7, then look for a possible sell off to $1,225.0 an ounce. Below is a daily June gold chart.
Jun ’17 Gold Daily Chart