Technical Analysis

Gold looks to extend breakout above $1,900 on dollar softness

The dollar is starting to lose further ground on the day and we are seeing gold buyers take advantage of that, searching for a firm break above $1,900 after yesterday’s upside push. It has been a stellar start to the new year for gold and the typical seasonal tailwind from December to January ahead of the Lunar New Year is also a contributing factor.

The January gold trade has been one that has delivered timelessly and it looks to be the case again this year, barring a major turnaround in sentiment in the next two weeks that is.

With the latest gains today, gold is up 4.7% on the month already and with a break above $1,900, there is little to stop a further upside leg so long as market sentiment stays as it is currently.

The next key resistance is seen far away, closer towards $2,000.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button