Gold keeps a solid rebound above $1,800 this week and is up 0.7% today
The breakdown last week certainly got gold bugs a little jittery but fast forward a few days and suddenly things are looking much better for bullion at the moment.
The nudge higher above $1,800 on Friday has continued to $1,840 levels currently as gold looks poised for a third straight day of gains - helped by weakness in the dollar.
Buyers have now seized near-term control on a break above the key hourly moving averages and that puts the focus back on the daily chart with eyes on the broken trendline support - now resistance - and 200-day moving average (blue line) in particular.
That resistance region is seen @ $1,849-54 and poses a key upside test for gold this week should buyers continue to try and push the agenda in the sessions ahead.
Just above that, further resistance is seen at the 100-day moving average (red line) closer to $1,871 and the 50.0 retracement level @ $1,872.
As much as Bitcoin has gotten all the love from Tesla yesterday, there's one particular line in the SEC filing that some might have looked past:
"In January 2021, we updated our investment policy to provide us with more flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity. As part of the policy, which was duly approved by the Audit Committee of our Board of Directors, we may invest a portion of such cash in certain alternative reserve assets including digital assets, gold bullion, gold exchange-traded funds and other assets as specified in the future. Thereafter, we invested an aggregate $1.50 billion in bitcoin under this policy and may acquire and hold digital assets from time to time or long-term. Moreover, we expect to begin accepting bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis, which we may or may not liquidate upon receipt."
While Tesla made no mention of investing into gold or gold ETFs just yet, it is something to take note of and potentially be mindful about in case some of the euphoria starts to spill over to precious metals in the future.
