Morning Briefing: Gold Defying the Market Experts
Wall Street continues Short and caught short Gold as Y 2018 open the New Year’s trading.
Gold continues to defy it critics rising 11.00 Friday to break the psych mark at 1300, and close on its highs near 1305.00. The new 3-month high represents a 70.00 rally from its mid-December lows near 1135.00.
Over 50% of the rally was made in the last week over the Christmas Holiday frame on much lower than normal average daily volumes.
And, the RSI (Relative Strength Index) is now at very overbought marks. The RSI has been an excellent indicator of short-term price corrections in Y 2017.
Gold has benefited from lower US T-Bond yields and a much weaker USD into the year-end, plus short covering in a thin market.
As global complacency over the trajectory of US interest rates continues to be low, precious metals, in general, should continue to benefit.
Gold has opened positively in Asia, touching 1308.00 initially before correcting to a still respectable 1306.35.
Gold has now traced out at Double Top at 1308.00, and this should be reasonably strong resistance intra-day.
A clear break there open the way to the mid-September highs of 1314.50. Support is at 1302.00 and 1300.00 followed by 1294.00, Friday’s low.
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