Gold backs away from the highs of the year as the trade temperature falls

Gold retreats from $1355

The high close of the year in gold came on January 23 at $1356. Since then that level has been exceeded on an intraday basis seven times including today -- only to close below it.

After four days of gains, the pair leveled out yesterday as the narrative on trade began to shift away from a trade war and towards some kind of US-China deal. Expect far more twists and turns in the coming months.

But for me, this is all about technicals at the moment. Gold needs a clear catalyst to break above the highs of the year -- not fear, but something that actually happened. Barring that, the resistance at these levels will hold and the range trade will continue.