Gold stays buoyed to start the new year

Technical Analysis

Author: Justin Low | gold

Gold held off the dollar advance from yesterday and stays in a good spot above $1,940 in trading today

Gold D1 05-01
The Georgia runoffs will present the next key risk for gold and risk trades in general, but the resilience from yesterday reaffirms that gold buyers are looking past most of the short-term risks in the market to start the new year. As noted earlier today:

A surge in ETFs was part of the reason bolstering gold to start the new year, as holdings in SPDR Gold Shares increased by 1.5% - the biggest daily jump since September.
That shows that real money flows are bolstering the narrative in gold as we get 2021 going, with the technical levels also supportive of that for the time being.

The push above $1,900 and the 100-day moving average (red line) puts buyers in control of price action for now and looking towards the early November highs of $1,960-65.

As things stand, it would take a considerable push back under $1,900 - back towards the key hourly moving averages - to derail the momentum in gold.

Otherwise, should buyers look past the distraction from the Georgia runoffs, then gold may be primed for a relatively strong start to the new year.

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