Gold prices gained $25 to $1167 in the largest one-day gain since June 19.
Prices had declined in 9 of the past 11 days heading into yesterday. Profit taking and dollar weakness have helped to prompt the turnaround but soft wage growth in the jobs report also underscores that the Fed could be on the sidelines through Q3 2015.
A good sign for the bulls is that trading volume is about double the 100-day moving average for this time of day, according to Bloomberg.
There were also signs of a washout in a quick fall to $1131 from $1140 in Asia-Pacific trading.
Despite the rebound, gold still hasn’t accomplished much, technically, if it holds below Wednesday’s high of $1170. Keep a close eye on the level. If it breaks a squeeze up to $1183 could be in the cards.
Gold daily chart
Update: Gold is at fresh highs up $30 to $1172, breaking the resistance level I mentioned earlier.
