The precious metal opened today after an extended weekend. After gold fell to fresh 2019 lows, the precious metal is currently seen rebounding higher. Economic data was sparse on Friday and the current jump in gold prices is seen as a result of technical positioning. Big ticket events due later this week such as the US advance GDP report will be key in shaping the direction of gold this week.
Will Gold Rise Higher?
Gold prices formed a bottom near the 1273 handle which also coincides with the 200-day moving average. As price formed a spinning bottom candlestick pattern, a bullish follow-through is required today. If gold manages to close higher, we anticipate further gains in store. Currently, gold is seen testing the previous minor resistance at 1278.80. A breakout above this level will signal further gains targeting 1284.60.
