Is Gold Going To Hold Onto $1,200 an Ounce?
In the early morning trade, April gold is trading down $13 for the day and currently trading at $1202.0. Even though April gold is down roughly $20 off its weekly highs, we’re not ready to call an end to this short-tern bull rally just yet. In fact, with this week’s weaker than expected jobless claims, trades above the bottom of the uptrend channel, and trades above its 20 & 50-day moving averages, all give April gold a good chance to hold this $1200.0 an ounce handle, and possibly a chance to rally back to the weekly high of $1221.8. Even with the US dollar rallying again, April gold has held its own, which states that the bulls aren’t ready to give into this sell off just yet.
If we take a quick look at the daily April gold chart, you’ll clearly see that gold is currently trading above its trend line channel and above its 20 and 50-day moving averages. If gold could hold onto the $1,200.0 an ounce handle and then break this week’s high, you can’t rule out a rally up to its 200-day moving average which is currently resting at $1276.3. I highlighted these levels below on my RJO Futures Pro platform.
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