Gold has another solid up day. Eight higher days in a row.
Trades away from $1300 area
Gold is working on its 8th straight up day and in the process is moving away from the $1300 level and trades at the highest level since September. Contributing to the precious metals rise is a lower dollar and some higher inflation. Crude oil remains above the $60 level and global growth remains positive.
Looking at the daily chart above, the $1296 to $1306 area has been home to a number of swing levels going back to April 2017. Yes, the price did move above that area at the end of August and for most of September, but in October and November, the sellers restarted to use the area as a ceiling. On Friday (last week), the price tested the upper extreme. Today, the price is busting through it.
Drilling to the hourly chart, the price trend higher is clear. Over the last 5 or so trading days, the price has accelerated the move higher (see red circled numbers and trend line on the lower chart), and is systematically marching higher and higher.
The close risk for longs (from that chart) comes in at the upward sloping trend line at $1304 currently. Stay above and the bulls are in firm control. Move below and traders will look toward the 100 hour MA at $1294 (and moving higher).
Those two levels are more or less in line with the swing area on the daily chart (between $1296 and $1306). That increases the supports importance going forward.
Buyers are in control Risk can be defined. If the risk levels are not triggered, the momentum can continue.