The safehaven yellow metal gained $19.10 (+1.60%) in Tuesday afternoon trading, to $1,215.10 per ounce. With growing uncertainties surrounding the new administration, and accompanying stock market weakness, gold is proving to be a very attractive asset right now.
For the technical analysis of gold, let’s kick it over to the experts over at Kitco:
Technically, April gold futures prices closed nearer the session high today. The gold bears still have the overall near-term technical advantage, but the bulls have gained some upside momentum early this week. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the January high of $1,223.00. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at last week’s low of $1,182.60. First resistance is seen at today’s high of $1,217.40 and then at $1,223.00. First support is seen at $1,200.00 and then at today’s low of $1,195.60. Wyckoff’s Market Rating: 4.0
On the ETF side of things, the SPDR Gold Trust ETF (NYSE:GLD) was trading at $115.61 per share on Tuesday afternoon, up $1.64 (+1.44%). Year-to-date, GLD has now gained 5.47%, versus a 1.40% rise in the benchmark S&P 500 index during the same period.