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Gold setting up a continuation?

jeffriess
January 31, 2020
by Joseph Jeffriess, Market Analyst

Buyers starting to test highs as equities return to the red.

Weaker equities look to have reenergized Gold buyers in today’s session. European indexes have given back earlier rallies moving into the red.

Gold started the day with a very small decline before buyers moved back into the market, currently, price is 0.45% higher trading back above 1580. Yesterday sellers set up a failed high these can be bearish indications but for the time being it looks to be failing. The main point of interest today is the continued formation of higher lows (HL), these are good to see in established up trends and with higher highs (HH)  to show a good trend structure. To show continued strength we would like to see buyers move above 1582 resistance and form a new higher high to hold momentum in the bull camp. A new fail at resistance and or a move below 1566.50 starts show heavier seller numbers.

Gold’s daily chart.

All times are AEST.