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Gold looks to seal a technical break higher in trading today

Gold (XAU/USD) daily chart

This is a chart that is acting up as a bit of a surprise today. The overall market mood is quieter but gold is surreptitiously angling for a technical break higher in a push above the $2,000 mark. The precious metal is now trading to $2,012 and that is the highest level since May, as buyers go hunting.

We have seen the retreat in bond yields since the turn of the month but in the case of gold, it is also building from continued momentum since October (bouncing off its 200-week moving average at the time) and more recently a test of its 200-day moving average (blue line).

The dollar’s weakness in general has also been a key tailwind for gold’s latest rise and considering that major central banks have moved to the sidelines, there is reason to stay optimistic in the gold trade in the long-term.

I would expect gold to retest the 2020, 2022, and 2023 highs at some point moving forward but a potential technical break higher today could bring forward that timeline potentially. That considering there is little standing in the way of gold from retesting the May highs upon a firm break above $2,000 as what could be the case as the above.

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