Gold Price Analysis Talking Points:
- Gold prices[1] started off the week with a bang, rallying up to fresh seven-year-highs.
- Buyers shied away before a test of the 1750 level, and a short-term range has since begun to build.
Gold Prices Jump to Fresh Seven-Year-High – Now What?
The week started off with a bang for Gold prices as Monday and Tuesday[2] saw the yellow metal push up to fresh seven-year-highs. Gold price action made a fast approach at the 1750 marker, but fell a bit shy as that newly-printed high came in at 1747.74; after which a pullback showed as Gold prices built into a short-term range formation as looked at on the hourly chart below.
Gold Price Hourly Chart
Chart prepared by James Stanley[3]; Gold on Tradingview[4]
Gold Bulls Back in Charge After March Malaise?
Gold prices have had some form of a bullish big picture backdrop since Q4 of 2018; right around the time the Federal Reserve was nearing an end of the hiking cycle and growing closer to making rate cuts as they did three separate times in the second-half of 2019. As this was happening, with the FOMC[5] shifting towards more neutral language in Q1 and towards more supportive language in Q2, Gold prices popped-higher, with the bullish breakout gaining considerable momentum in the summer of last year. As the Fed neared a pause, Gold prices put a pause on the bullish trend, digesting from early-September into mid-December; but as the door opened into 2020 another series of risks took over the backdrop to help propel Gold prices up to higher-highs.
With the early-year threat of escalation between Iran and the United States to go along with
