More buying ahead of Lunar New Year
The seasonal tailwind for gold is blowing once again after a sideways chop for most of January. Gold is at the highs of the day, up $8.50 to $1311.
The rally breaks above the June high of $1310 and clears the way for a test of the May high at $1326. We're also days away from the 100-dma crossing above the 200-dma.
The risk is that selling starts along with Chinese golden week beginning on Monday or on a front-run ahead of that. However there's also a historical pattern of buying after Golden Week so it's a matter of whether you want to ride it out or try to time it.
