Gold flew higher overnight, extending its recent advance. Gold was up close to 2% in early European trade, hitting its best levels in around two weeks. It has now added almost 4% from its low last Tuesday, and the chart is starting to look quite constructive from a bullish perspective. But it also looks as if there’s a touch of resistance around $4,100, which will need to be taken out in a decisive fashion for bullish sentiment to continue to improve.
The daily MACD looks quite supportive. Although early days, it has certainly pulled back from the overbought conditions seen three weeks ago. It has hit the neutral level and has started to curl up. While this is no guarantee that the current rally has legs, it does suggest some increase in upside momentum.
Source: TN Trader
Meanwhile, silver outperformed gold this morning, tacking on over 3% from Friday’s close as it pushed up towards the $50 level. Silver also hit a low last Tuesday, and has rallied steadily ever since, adding around 6% since then.
Its daily MACD has gone from very overbought three weeks ago, back to neutral. And, like gold, it has curled up a touch thanks to the gains made over the past few sessions. $50 per ounce may act as resistance, particularly as the last time silver traded here was during its slump off its all-time high from nearly three weeks ago.
