Gold Technical Update: Bulls Take The Upper Hand

Gold finds support

Gold Finds Support

Gold Bulls Take Control

The yellow metal has since broken to higher-highs, touching $1758 on April 8 and then breaking even higher with three consecutive bullish closes taking it up to $1775. Monday’s opening has seen it surging even higher, trading at $1787 at the time of writing.

Higher Low Above 50DMA Required

Higher Low Above 50DMA Required

What we now have is an interesting situation for gold, which appears not so much buoyed by future inflation expectations as by falling bond yields and a favourable technical picture. As things currently stand, the bears have taken a back seat in gold markets while bond yields appear to have further down to go before establishing support.

In the short term, it’s important that the gold price closes above the December low of $1762 if the bulls are to keep the upper hand. In the medium term, it’s absolutely crucial for the gold bulls to set a higher-low above the 50-day moving average, which is currently around $1750. This will send a broader signal that gold may be prepared to regain some of the ground it has lost in 2021 to other hard assets.

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