Gold bulls aim to retest the 1,366.00 region

Base metals keep rallying on easing geopolitical concerns.
Gold supported by Fed's dot plot, dollar's weakness.

Valeria Bednarik FXStreet

Gold prices retake the upside and stand at their highest for the week, with spot trading at around $1,350.00 a troy ounce after hitting a daily high of 1,355.58. Base metals are up for the week, despite the positive tone in equities, with silver so far leading the way, up over 2% from Friday's close. The bright metal trimmed an early decline, amid receding dollar's demand, and gained on easing geopolitical concerns that usually had a limited impact on prices.

Further backing the commodity is the sharp rally in oil prices which stand at fresh 2018 highs following the US EIA weekly report, with showed that US stockpiles of crude decreased by less-than-expected, but also that a large gasoline inventories' draw.

Gold has topped twice this year in the 1,366.00 region, after bottoming at 1,236.43 mid-December, and held above the 1,300.00 threshold these last couple of months. The fact that the Fed hasn't changed its dot-plot to more than three times is yearly, is surely supporting the bright metal, with scope now to retest the mentioned 1,366.00 region. Beyond it, the next key level is July 2017 high of 1,375.11, while beyond it, the path toward 1,400 becomes clearer.

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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