It’s still early in the trading day, but gold is breaking above its closing highsfrom January 31st in a fairly significant manner. In other words, it could sell-off later in the day and close below its highs of $1,589) from late January. However, a close above $1,600 would still make a few headlines and draw a lot of attention to the yellow metal.
We did see a huge intraday spike in gold in early January…shortly after Iran’s Qasem Soleimani was killed in Iraq…so its recent intraday high is $1,611. As we have been saying recently, we might have to see a move above that level to give gold another rally leg higher, but there’s no question in our minds that a close above $1,600 would still be quite positive. This kind of move would be especially true given that its MACD chart is getting very close to making a positive cross to the upside (at a much higher level than it did back in November/December).
Matthew J. Maley
Chief Market Strategist
Miller Tabak + Co., LLC
Founder, The Maley Report
275 Grove St. Suite 2-400
Newton, MA 02466
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