Gold is one of my favorite trades to start the year and it’s off to a strong start, gaining 1.3% today after a 0.5% gain on Friday.
Gold appears to be benefiting from safe haven demand that has also given bonds a lift while weighing on equities and crude.
Technically, gold continues to reject the one-month low it touched in early trading on January 2 and has broken the minor downtrend since early December. It’s still far too early to get excited about gold but a break of resistance at $1210 and the strong seasonal pattern in gold bode well.
Gold hourly chart
