Both and had been langouring in no-man’s land for a while, but now that the U.S. Administration has changed hands and Trump has been sworn in, both have developed a strong case of bull-fever.
In particular, Gold has now not only broken out of its December wedge (displaying indecision and apathy), but it has broken up through strong resistance at $2,721.
What does this mean for Gold long-term? Impossible to say, but it does mean that Gold is almost certainly headed back up to $2,800 for now.
Whether it can continue up past that we’ll have to see.
It may encounter strong resistance there, but it is certainly looking healthy enough for now.
Even the MACD momentum indicator agrees. The trend is strong and healthy.
Traders will be looking or any pullbacks for entry opportunities on the daily and/or 4-hourly timeframes.
