Gold buyers keep the party going to start the new week

Technical Analysis

Author: Justin Low | gold

Gold is up by another 0.7% on the day currently

Gold M1 24-06
ForexLive
Gold is holding above $1,400 on the new week and price is trading closer to $1,409 currently amid a weaker dollar and more expectations of major central banks beginning to ease monetary policy in the coming months.

Of note, price is trading at a near six-year high now and looks set for a meaningful break above the 100-month MA (red line) for the first time since 2016. Further resistance is now only seen at the August 2013 high @ $1,433.73 next.

Fundamentally, everything is falling right into place for gold. Bond yields are plunging amid easing expectations from global central banks while geopolitical and trade tensions are also contributing to haven demand somewhat.

With the dollar losing its allure as a haven trade and gold regaining its own status in that regard, it has helped to give gold that added push since the end of last year - following seasonal January demand.

Looking ahead, geopolitical and trade tensions may have a say in affecting gold price in the near-term to some extent as they fade/improve but in the bigger picture, the backdrop of major central banks around the globe easing monetary policy and dragging down yields will only help to serve as the impetus for gold to keep pushing higher this year.

It's been a hell of a month already for gold when you look back at where things began. And looking at the technical picture, the good news for buyers is that there's scope for further gains still to come this year.

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