Gold began the week with a solid bid, having spiked higher during the Asian Pacific session. Gold was once again testing an area of intermediate resistance around $3,370.
If the bulls manage to push prices through here then $3,400 becomes the next upside target. The bulls will be encouraged by the daily MACD which has pulled back to neutral levels having been extremely overbought in April, just after gold traded at a record high of $3,500.
The fact that the MACD has reset back at neutral levels without a significant downside correction is helping to boost bullish sentiment. Despite this, gold remains in a relatively tight trading range.
Source: TN Trader
Meanwhile, silver also found a bid this morning as it continues to trade above $38 per ounce. If it can manage to dig in and consolidate above here, then the bulls will want to target $40.
