Gold is up over four percent in 2015.
Bullion.Directory precious metals analysis 13 January, 2015
By Christopher Lemieux
Senior Analyst at Bullion.Directory; Senior FX and Commodities Analyst at FX Analytics
In “Gold Spikes – Price Action Back in Ascending Channel,” gold was able to regain ground and was able to muster up momentum to regain an upwards trajectory, after falling pray to end-of-year selling. The horrid start for equities and growing global tension this year has paved the way for gold’s gains.
Gold has been able to overtake near-term resistance level of $1,224 per toz., and it allowed room for advancement. Price action is attempting to breech $1,240 per toz., a key barrier to $1,300, in early trade. If the yellow metal can close above this key resistance level (and subsequently the 200-day EMA), gold should have continued follow through to $1,260 and $1,274. The ADX momentum indicator is beginning to round upwards, following a long period of flattening out. This would suggest there is strength building in the current trend, while the bullish DMI crossover further suggests more upside in the coming sessions.
Price action failed to overtake $1,240 on December 9, falling short of resistance. If gold cannot achieve upward momentum, expect a consolidation phase as profit taking occurs. Support remains at $1,224 and $1,212 per toz.
The increased market volatility has caused a demand for safe havens, including precious metals, bonds and the yen.
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