Gold has recovered from lows and is pressing ahead early this week. The precious metal is testing short term highs as questions abound about inflation data being stronger, but a more aggressive U.S Federal Reserve lurking.
Test of Short Term Highs for Gold
Gold is testing short term highs early this morning, and it is near 1327.00 U.S Dollars an ounce. In the midst of broad market volatility last week, the precious metal experienced plenty of rollercoaster moments.However, Gold has rebounded from lows and has put in solid gains as the week has begun. Support looks to be around 1317.00 U.S Dollars, while important resistance may be near the 1333.00 level.
Gold Presents Challenging Long Term Dynamic
A look at a long term chart highlights Gold’s inability to sustain highs made in late January, as it tested peak values not seen since last September. And Gold’s long term challenge remains a key barometer.Recent economic data has produced signs of inflation, but the stronger U.S Dollar and concerns the Federal Reserve will remain the only aggressive central bank has caused volatility for Gold. However, opportunities clearly exists for traders who have the ability to be patient.
In the short term we believe Gold may be positive. Mid-term and Long term we are unbiased.