Gold’s price chart has improved substantially over the past several weeks, in sharp contrast to mid-January levels when the bears were firmly in control. The subsequent bounce has stemmed from growing political uncertainties as well as a downturn in the U.S. dollar, which helps gold’s price rise in dollar terms.
For the technical analysis of how gold prices are acting, let’s consult the experts over at Kitco:
Technically, April gold futures prices were nearer the session high and poised to close at 2.5-month high close today. The gold bulls have the slight overall near-term technical advantage. Prices are in a six-week-old uptrend on the daily bar chart. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,265.00. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at today’s high of $1,237.50 and then at $1,250.00. First support is seen at today’s low of $1,229.20 and then at $1,225.00. Wyckoff’s Market Rating: 5.5
We’ll be watching gold prices closely in coming sessions to see if the metal’s recovery can continue, or if the longer-term bearish trend will once again take hold.
The SPDR Gold Trust ETF (NYSE:GLD) rose $0.47 (+0.4%) in premarket trading Wednesday. Year-to-date, GLD has gained 7.16%, versus a 2.42% rise in the benchmark S&P 500 index during the same period.