Or a failed recovery?
Gold fell heavily between the middle of April and May but then started to recover as interest rate expectations were pared back. How sustainable is the recovery?
Gold - Gathering momentum? - MarketPulseMarketPulse
It ran into trouble quite quickly around $1,870, at which point it struggled to gather any upward momentum. But after falling back towards $1,830 today, that may have changed.
A rotation off the 50% Fibonacci retracement level – mid-May lows to late-May highs – which coincides with the 200/233-day SMA band may signal a resumption of the recovery that sees it test last week’s highs.
If so, then perhaps gold could enjoy more of a recovery and a run at $1,900. But that may depend on how the broader markets behave and whether yields and the dollar avoid rising much further.
A failure at $1,850 or $1,870 could spell trouble for the yellow metal, especially if accompanied by higher interest rate expectations and a stronger dollar.
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