Gold has made an impressive comeback ahead of Chinese new year
Gold up 1.8%
Gold is now within striking distance of the 2016 highs after an impressive turnaround. Gold has outperformed any currency today and is up $24 to $1353.
The January high was $1365 and the 2016 high was $1375.
If gold can clear both those levels, there is lots of clear air above. What's positive, is that if the US dollar continues its swan dive, then gold is going to look increasingly attractive.
The hiccup in the plan might be Chinese new year holidays, which start when Asia opens for the day and run through next Wednesday.
The traditional thinking is that Chinese buy ahead of the holiday, which is a major time of year for gift giving.
In recent history, however, there is good reason to stay long gold. Last year during the holiday week, gold rose 2.08%. The year before it rose 4.1% and in 2015 it rose 0.25%.