Gold’s recent period of consolidation - support around $2,280/oz. and resistance around $2,340/oz. - has now been broken as buyers sent gold to a near three-week high on Friday. The precious metal also opened back above the 20-day short-term moving average, a positive sign, and if gold can remain above this indicator, then further gains now look likely. Traders should remain aware of the situation in the Middle East where any increased military action will give gold another boost higher.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Gold prices may continue to fall.Silver has outperformed gold since early January and the Silver/Gold remains positive and set to move higher. A series of higher lows and higher highs since the start of the year remain in place and a print above the mid-April spike high at just under 0.012 will see this trend continue.
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