In the early morning trade, February gold is currently trading slightly in the green at $1,474.9 and its pretty surprising in the face of the two geopolitical events that have unfolded within the last 24 hours. First, is the U.S. China Phase I Trade Deal which was finalized “in principle”, which has left some gold investors skeptical down the road. However, in the near-term this could take a lot of safe-haven buying out of this market which could leave the bears in charge of the market. The other is the UK Conservative Party winning the British elections along with winning the majority in the House of Commons and is seen as a BIG win for National Sovereignty around the globe. After analyzing the two geopolitical situations the reason that gold is holding on to its overnight gains, is that the U.S. dollar has sold off and probably giving the shiny one some short-term support.

If you look at my daily February gold chart below, you’ll see that I highlighted four simple levels or ranges. The shiny one is coming to an end of its symmetrical triangle pattern and can break either way. For the gold bulls, if it breaks above the triangle, which I highlighted the prices below, then look for a rally up to the contract high of $1,571 made back in September. For the gold bulls, I would be a seller below today’s low of $1,465, which is also pretty much the bottom of the triangle, and then for a sell off down to its 200-day MA of $1,424.