It’s all playing out well for precious metals to start the new year thus far. Gold and silver are once again in the spotlight today with the former posting gains of 2.1% to $4,420 and the latter up 3.7% to $75.46 respectively. This follows from a strong rally early on Friday but one that fizzled out quite a bit towards the end of last week.
In the case of gold, the selling hit after price action tested the 100-hour moving average. Sellers held firm in keeping a more bearish near-term bias on Friday. However, the tables have now turned as buyers are the ones exerting dominance to flip the script today. The jump to start the week sees the near-term bias turn more bullish on a push above both the 100 and 200-hour moving averages:
The technical story is also the same for silver after dropping off on Friday on a test of its own 100-hour moving average. And price action there also sees a push above both the key hourly moving averages today as buyers look to officially kick start the new year in style.
The early focus on geopolitical tensions is one key reason that reinforces a more bullish outlook for precious metals in general.
It’s still early in the year but January tends to be a good month for the likes of gold from a seasonal perspective
