US dollar selling and gold buying took a break last week but they’ve both returned today in tandem. The optimism about a quick resolution to tariffs is fading and the market is feeling angst about US growth again.
That has gold up $31 today to $3349, which gets the market back to where it opened the day on Friday.
Gold fell hard early last week after touching a record $3501 last Monday. The big figure likely led to a wave of profit taking that quickly landed gold at $3259. That low has held on two further tries while gold has been unable to break the 61.8% retracement at $3380.
I think those two numbers now define a short-term trading range for gold and we will likely be waiting for tariff news to break it and send gold back up to the highs at $3500 or down to some moderate support near $3180.
This article was written by Adam Button at www.forexlive.com.
