Yesterday saw the gold price surge above $3,250 – a level that had acted as resistance since last Thursday. Gold hit $3,320 this morning, trading at levels last seen earlier this month. It appears that the precious metal is regaining its role as a safe-haven play, and the pullback in the US dollar has certainly helped.
This latest rebound appears tied to a rise in geopolitical tensions, focused on reports that Israel was planning an attack on Iranian nuclear facilities, although there’s also some shifting sentiment around inflation and interest rates.
As far as the bulls are concerned, they will be hoping that $3,250 holds as support on any pullbacks. If so, that would increase the possibility that gold could experience another leg up in its multi-year rally.
As the daily chart shows, the MACD has begun to curl up, and it’s doing this from relatively ‘neutral’ levels, having been extremely overbought in April, around when it topped out at an all-time high of $3,500.
Source: TN Trader
Silver also rallied sharply yesterday with prices breaking above the top of the range around $33 per ounce. But silver now needs to build on these gains and hold above $33 to encourage fresh buying interest.
Unlike gold, silver is still well below its previous record high of $50 from 2011.
