Gold edged higher in Asian Pacific trade. But it lacked strong upward momentum and prices dropped back as Europe opened. But buyers subsequently returned, pushing gold back up into positive territory ahead of the US open.
Gold continues to trade above $3,000 and appears to be consolidating. This follows on from a strong rally so far this month which saw gold surge through $2,900 just over a fortnight ago, and then take out $3,000 early last week.
As noted previously, these moves have taken gold back into overbought territory as measured by its daily MACD. Yet the MACD remains below the highs hit in mid-February when gold first broke above $2,900. This leaves the market in uncertain territory.
Source: TN Trader
The MACD suggests that it can certainly push higher from here. Yet a pullback, or an extended period of consolidation, would help to reset the MACD and thereby provide more fuel for further gains.
Meanwhile, silver has quietly made back most of its losses from the end of last week. It has largely gone under the radar, and is now closing in on $34 per ounce once again. This level has acted as resistance previously, and it looks as if it may be tested once more.
