Trump-fuelled gold rally to meet resistance

Trump-fuelled gold rally to meet resistance

Gold has rallied as investors respond to comments from US President Donald Trump and several US officials, however hourly and daily data offer divergent images of the market’s sentiment, according to OANDA.

Investors have shifted from equities into safe-havens such as the yen, New Zealand dollar and gold in recent days, with the latter rallying $30 an ounce from last week’s low point, the company said.

OANDA senior market analyst Jeffrey Halley said gold had also seen a “$10 spurt” on Tuesday, 31 January, “touching US$1,215 before Asia has quietly unwound most of it to trade at US$1,208.50”.

Mr Halley said gold had experienced a “very nice little uptrend” when examined on an hourly basis, “propelled by the White House-driven tailwind that started blowing over the weekend”, however when examined on a daily basis looks bearish despite the recent rally.

“The Trumper-tantrums of the last five days has seen gold make a storming comeback as the USD weakens and investors seek safe havens,” Mr Halley said.

“The short-term and longer-term charts post contrasting technical pictures. My best interpretation would be gold has the potential to break higher in the short-term but would almost immediately run into some serious longer-term resistance.”

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