Gold is off to a pretty solid start this year, as the rally is going pretty strong!
Here’s an opportunity to hop in that uptrend.
Gold (XAU/USD): 1-hour
The precious metal has been cruising higher with its lows connected by a rising trendline. Are we about to see another test of support soon?Stochastic seems to be suggesting so, as the oscillator is heading south while gold is stalling near the $1,930 level.
This could mean that a pullback to the Fibonacci retracement levels is in order. I’ve got my eye on the 61.8% level that’s right smack in line with the trend line and a former resistance zone!
At the same time, the 100 SMA is above the 200 SMA to confirm bullish momentum and is close to the trend line support as well.
So far, it looks like downbeat U.S. data has been lifting gold prices. After all, the prospect of the Fed calling it quits with interest rate hikes could be a good thing for overall economic activity.
In turn, this could boost investors’ moods and stoke demand for risk assets like commodities.
We’ve got the U.S. retail sales report lined up later this week, and number crunchers are predicting another slump in consumer spending. If that’s the case, gold could be in for another leg higher, so don’t miss it!
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