Gold Price Talking Points
- Gold prices[1] held the bid through much of this week.
- With another fear-based driver entering the equation, the potential for strength in Gold remains.
Gold prices began the year with a pronounced bullish move[2], jumping up to yet another fresh six-year-high as tensions between the US and Iran began to show. This isn’t the only bullish driver to Gold prices, of course, as the yellow metal is coming off of a year that saw prices surge by as much as 23% from the February low up to the September high. The big push point from last year appeared to be the Fed[3] and the bank’s shift from a very hawkish stance in 2018 to a dovish stance in 2019, reversing three of the four rate hikes from the year-prior.
But as the Fed indicated that a pause was near, Gold prices settled through Q4 and began to digest that previous breakout, forcing a 38.2% pullback of the summer move. That price came into play in November and helped to set the low around 1445, at which point bulls got back to work, forcing in a series of higher-highs and higher-lows until late-December, at which point price action[4] broke out of the bull pennant formation and continued to run until that fresh high was set on January 8th.
Since then… more digestion, with the recent swing low printing at the 1535 area that was looked at a couple of weeks ago[5].
Gold Daily Price Chart
Chart prepared by James Stanley[6]; Gold on Tradingview[7]
Another bullish driver showed up this week and this could be a difficult theme to work with. But as fear began
