Gold Price May Need to Digest, but Looks Broadly Bullish
Gold Price Technical Highlights:
- Gold price wilds swings could iron out into a rally
- Some time may be needed first to gain a strong footing
Gold price wilds swings could iron out into a rally
It’s been a wild month for gold, but despite it having been all over the place it could end the month somewhere around flat. It’s currently up about $40 from the close of February. The sharp down-move with risky assets caught many by surprise as wholesale liquidation even hit the safe-havens.
The sell-off certainly challenged the status quo and the trend over the past couple of years. But the resurgence over the past week or so has put gold back in a good place in terms of keeping the upward trajectory intact. It could still be a mess to trade for a bit beyond a very short-term holding period before we see a clean, sustainable rally develop.
In the very near-term, price is holding up well with a small consolidation phase that could lead gold higher towards the 1680/1700 region. But without some more digestion taking shape between 1450 and 1700, the outlook thereafter could remain in limbo.
A digestion phase marked by buying interest at increasingly higher levels over the coming weeks could do gold some real good. A solid base from which to launch from may have the all-time highs over 1900 in play in the coming months.
Gold Price Daily Chart (1450/1700)
Gold Price 4-hr Chart (small consolidation may lead higher)
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.