Gold is shining brightly

Since the end of last year Gold is up with more than 11%. The precious metal bottomed at $1122 in mid December, but today posted a fresh daily high at $1263.90, which is the highest level for the past three and a half months. Bulls conquered the resistance at $1261, where now is located the 200-day SMA, but the price slightly retreated later to currently trade at $1251. 

Technical readings on the daily chart confirm the uptrend. The 20-day SMA is showing strong bullishness. RSI and stochastic are indicating overbought conditions and are keeping directional strength. But we must pay attention to the development within the positive area, as no firm bearish signals are seen around. Even well established within the positive territory, both RSI and stochastic have turned slightly to south.

Gold is definitely influenced by Trump’s policy, particularly his tax reform intentions. And honestly this is not positive for the precious metal. Tomorrow’s speech is long awaited and let’s hope that will enlighten markets with some definite measures.

However during the last three and a half months gold is steadily moving up and I’d rather bet that the sentiment will stay positive.