In the early morning trade, April gold is currently up $10 and trading at $1,296.6 an ounce. The shiny one has held the $1,275.0 support level and broke new weekly highs overnight. With the U.S. greenback selling off, it has fortunately helped the bull camp along with word yesterday that U.S./China trade negotiations were not as close as once thought. However, the biggest factor of the overnight gold rally is that the Fed is considering an earlier end to quantitative tightening, which basically means the central bank will decrease the amount of liquidity within the economy. Also, they will pay less attention to inflation in the near term as well, which should be seen as another piece of news for the gold bulls.
If you take a quick look at the daily April gold chart, you can clearly see how gold is approaching $1,300 and if it holds this time there is clearly little resistance after that level. Furthermore, the technicians are closely watching the very bullish momentum pattern of the golden cross, which is when the 50-day crosses above the 200-day as it starts sloping up. I highlighted this pattern below on my RJO Futures Pro daily April gold chart.
Gold Apr ’19 Daily Chart