Gold steadies
Gold was firmer this morning, as was silver. It is certainly early days, but there are some small, yet significant, signs to suggest that the post-election slump may be over. Gold looks as if it may be finding its footing following the sell-off which began at the end of October. This accelerated into a rout as the Trump victory became apparent and yields and the US dollar soared. Major support for gold comes in around $2,500, a level it last saw two months ago. But gold appears to have found a footing above here, with the daily MACD indicating a market that is more oversold than at any time since the summer of 2022. Shorter timeframe MACDs continue to level out, and even tick higher, which is an encouraging indicator. Some investors will feel that bond yields and the dollar need to reverse direction to lift gold from here. But that isn’t a requirement for the rally to resume. The next step is for gold to establish itself back above $2,600. If it can make further progress this week, then it may be too early to write off the prospect of fresh all-time highs.
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