The price of gold turned sharply higher Wednesday, aided by a weaker US dollar, and the precious metal is now running into a cluster of resistance which may prove tricky to overcome in the short-term. Gold has gained around $60 from its low print on Monday and is now running into a cluster of moving averages between $1,854/oz. and $1,874/oz. This area may provide stubborn resistance in the short-term with the CCI indicator also showing that gold is no longer oversold. If these simple moving averages are broken, the precious metal may re-test the $1,921/oz area ahead of the 23.6% Fibonacci retracement at $1,928/oz. Initial support is seen at $1,837/oz. the 38.2% Fibonacci retracement level.
The US dollar continues to guide gold and with the new Biden administration promising to keep the printing press going in order to re-boot the economy, expectations remain that the US dollar will likely weaken further, or at least any upside will be capped. The recent rally in the US Treasury space has ended, and been mostly retraced, and 10-year real yields continue to trade around negative 108 basis points. Read more…..
Chart of the Day
Silver is expected to perform better than gold for the near to medium-term, and Americas Gold and Silver’s production strategy will evolve around this thesis, said CEO Darren Blasutti.