Gold reversed and is trading higher this week as the USD weakened on Ms. Yellen “Spend big Now, Pay Later” statement to the Senate Banking Committee and the prospect for more aid/relief/stimulus favoring gold’s appeal as a hedge Vs looming inflation.
This sustained move over 1829.90 indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into the Key resistance cluster at 1864.00 – 1861, followed by 1881.70.
Look for sellers on the 1st test of 1881.70, and be prepared for an acceleration to the Northside if the break out happens with conviction.
Wednesday, Gold futures settled 26.30 higher (+1.4%) at 1,866.50oz as expectations for additional aid/relief/stimulus put pressure to the Buck.
Have a healthy day, Keep the Faith!