Gold breaks last week's highs and threatens $1800

Technical Analysis

Author: Adam Button | gold

Gold continues to shine

Gold continues to shine
Gold has now nearly recovered from the two-day rout earlier this month. It's up $18 today to $1799 with most of the gains coming in the past few minutes.

The market is increasingly confident that Powell won't tip a taper at Jackson Hole on Friday, especially with the event going virtual due to a sharp rise in US covid cases.

The rally in gold is also part of a broader retracement lower in the US dollar and a bounce in commodities as the market begins to see a peak in this wave of covid. The larger question though is about the next variant and long-term drag from the virus.

For now though, the easy money will keep on flowing with some of it flowing into gold. Bitcoin is also having itself a wonderful run, up 3.3% today to $50,282.

Technically, gold has now cleared all the major hurdles before completing the full retracement to $1815. If it can get above $1830, the bulls would have some room to run.

As I wrote two weeks ago: there's no one left to sell gold and everyone already hates it. That's usually a sign that the bears are exhausted.

Invest in yourself. See our forex education hub.
By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose