Today's gold bounce extends to $17

Today's gold bounce  extends to $17

Gold threatened a break of the March low yesterday after two days of heavy selling but it's bouncing today, proving that it still has some life left.

It's at the highs of the day, up $17 to $1702 as the US dollar broadly weakens.

This down through $1659 is a critical support zone for gold and it needs to get above $1755 to turn the tide, even temporarily.

Seasonally, April is the sixth best month but the period through July is middling. In the big picture, a retracement all the way down to $1500 could be corrective and set up a much bigger rally later.

If I think about the timing, it's a better buy after Congress passes more spending bills and we start to see big emerging market vaccine rollouts.