Technical Analysis – Gold 12/1/2017
By Antonis Vasloos
Gold futures have rebounded sharply at the start of the year and are trading at seven-week highs, as the dollar backtracked against a basket of other major currencies. This inverse relationship went in the opposite direction last month, sending bullion to 11-month lows.
February gold futures traded as high as $1,205.05 in the Asian session, and were on track for their highest settlement since November 22. Bullion is up 4.5% since the new year and has gained more than 6% over a three-week winning streak.
Relative strength is above 60 and rising, while the MACD shows continuing upward momentum above the zero line. Gold could experience stronger buy-in on Friday should risk aversion accompany Donald Trump’s inauguration.
- Support (daily): $1,198.75, $1,194.15, $1,191.00
- Resistance (daily): $1,206.50, $1,209.65, $1,214.25