Gold pushes higher
Gold rallied yesterday, and it was building on those gains in early trade this morning. A look at the daily chart shows how gold had drifted lower after hitting a record high of $2,685 towards the end of last month. It drifted lower over the following fortnight, until the middle of last week when it managed to build support just a touch north of $2,600. This provided a base from which prices have pushed higher, taking them back to within a few dollars of last month’s high. What is interesting is that the time it took for gold to pull back roughly 3% has helped to reset the daily MACD. It has dropped from overbought territory above 40, back to the region around 20. That means the MACD has halved while the gold price is back to record highs. This is good news for the bulls as it gives gold room to push on, without immediately rallying back into overbought territory. Silver is also firmer again today. This time last week it looked on course to break below $30 per ounce. Since then it has tacked on over 5%, and it too has managed to reset its daily MACD at lower levels. There is of course no guarantee that gold and silver will continue to rally from current levels. But the situation does look better for the bulls than it did this time last week.
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