Gold touched $1930 in the past few minutes, edging above Monday's high. It's a good sign for gold bugs as it quickly recovered following three days of modest selling.

gold daily chart d

Central banks are sending mixed signals about the need to hike rates but the market is feeling increasingly optimistic that a peak in interest rates is close. The seasonal tailwind for gold continues to blow and there's mounting evidence of sovereign buying.

We might start to see some weakness during/after lunar new year holidays and that will be a big test. I highlighted $1975 as a target at the start of the month and today is a stronger indication that we will get there. At some point gold will need to take a break though so those on the sidelines might want to wait rather than chasing.

In terms of narrative, gold has reclaimed some of its luster after the crypto flameout but with bitcoin back on its feet, the debate certainly isn't over.