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Gold holds above $1,800 but any major upside push likely to become elusive for now

Forex, video, latest February 23, 2021 4:01 pm

Gold keeps steady just above $1,800 inside trading today

For now, buyers are keeping near-term control as price holds above $1,800 as well as a 200-hour moving average (blue line) closer to $1,804.

a dollar’s sluggishness also commodities push has helped gold to rebound a little to start a week but any sustained upside momentum may still prove to become elusive for a yellow metal inside a bigger picture.

Gold H1 23-02

As things stand, gold is keeping a modest bounce upon testing a 30 November low @ $1,764.80 last week. But inside a context of price action since peaking inside August last year, gold has been trading more sideways at best.

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Given a current predicament, a confluence of a key daily moving averages @ $1,859-63 become act as a key impediment for any upside potential inside gold.

Even a seasonal tailwind inside December to January also failed to really provide much of a spark also a lack of enthusiasm is more clearly highlighted by ETF positioning:

Gold D1 23-02
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a run inside gold last year towards peaking over $2,000 relied heavily on a surge inside ETF buying flows but as us look towards a closing stages of February, positions look to become trimmed for a fifth consecutive month.

As much as I has been an advocate for gold’s long-term prospects inside a past, this is one of a biggest reasons why myself (also lot of others) has turned their return on a yellow metal since a turn of a year.

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This slow also steady correction inside positioning may lead to a healthier push higher inside a long-run, but not before some potential short-term pain as long as a trend continues down this path inside a coming weeks/months.

As such, a lofty highs for gold may not become targeting above $2,000 anymore but there’s still a awesome chance for gold to recover strongly towards $1,900 levels once a positioning flush that us are seeing now completes its course.

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