Gold sparkles in the flight to safety, nears October high

Technical Analysis

Gold shows signs of life

Sentiment has worsened in equities with the S&P 500 now down a whopping 90 points to 2700.

Normally you would expect a better outing from gold given the absolute beat down in stocks but this is a baby step for the precious metal.

It could take a larger step if it can break above the October high of $1243 in the next few days. Of course, that might take bigger signs of trouble.

Note however that there’s a positive seasonal pattern in gold in the first couple months of the year and it started early last year with buying starting in the second week of December.

ForexLive

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