GOLD price surged again last Monday and Tuesday, anticipating that the Fed would not raise rates on Wednesday. There was a little sell-the-news activity and gold had a minor pullback on the following day. However gold still had a better performance in January than any other sector. So far GOLD had 5.27% net monthly gain to the January closing.
Last week’s trades
The futures opened the week above Nat’s pivot line at $1096 and marched decisively up to $1128, a very solid gain of $32. Trader’s who were not alert may have missed the early part of that move, but the break through the first resistance level and Nat’s key line at $1110-$1111 was a very clear signal, with at least two distinct opportunities to get in.
Rhat moved continued $15 to her first sell level at $1125, and promptly reversed back down to the key line, offering a good tradeable move down. Two good moves, easily tradeable.
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The short-term support level has been moved up to $1080-90 from $1070-60 zone. Ahead, there is a major resistance line. The 200-day moving average at $1135.50 overlaps an unfilled gap from last Nov. 3 at $1135.90.
A move above $1143 could be bullish, a further advance up to $1150 area should be expected.
At the current moment, GOLD price has an ultra-short-term overbought condition. Early in the week we may see a sideways move or a minor pullback into last week’s low area for testing and to resolve the overbought condition.
The $1080-82 range is a key support. As long as the price stays above it, GOLD could move back up to challenge the overhead resistance lines.