Gold is off to a great start to the year, climbing for the third time this week and touching the highest levels since June.
It’s up $34 today to $1867, just $10 away from the June 2022 high of $1877.
A break of the resistance at $1877 would also highlight a rough inverted head-and-shoulders pattern on the daily chart .The measured target of that formation is $1975.
For large parts of the past few years, gold competed with crypto for a segment of the investing population’s attention. Though gold didn’t achieve anywhere near the upside of bitcoin, it’s also avoided the downside and much of the volatility. The turmoil in the crypto space may be drawing some interest back to gold.
At the same time, countries not friendly with the United States appear to be turning towards gold after Russia’s dollar reserves were locked down. Sovereign gold buying — including from China — surged in Q3 and that likely continued in Q4.
This article was written by Adam Button at www.forexlive.com.