It’s bee a lively start to the month for gold.
It rose as high as $4262 in US trading on Monday and that was the best level since the Oct 21 rout. It also looked like it could be a break above the mid-November interim high and on the way to a retest of the October record highs.
But the party didn’t last long for the gold bugs as it was quickly sucked back to finish about flat. Asia took the cue from the lack of a breakout and that led to a quick round of selling. The low was $4200 in a sign that buyers were willing to buy at the figure. When it couldn’t break, we got a bounce to $4221, which is where we currently stand.
gold daily
Overall, I would say the picture is constructive but the potential for a double top here is a risk. Also notable is that the seasonals run hot through January.
