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Gold's trading pattern is still 'heavily bullish' — FXTM

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(Kitco News) Gold's positioning is still very bullish, as the yellow metal is holding above $1,800 an ounce despite vaccine hopes and increased market optimism, according to FXTM. “It looks like the precious metal is deriving its strength from a weaker dollar and this could remain a recurrent theme this week,” writes FXTM senior research analyst Lukman Otunuga. “The technical picture remains heavily bullish on the daily charts as there have been consistently higher highs and higher lows. Prices are trading within a bullish channel, the candlesticks are above the 20-day Simple Moving Average, while the Moving Average Convergence Divergence has crossed to the upside.” If prices remain above $1,800, gold can test $1,815 and then $1,825 an ounce. If gold falls below the $1,800 level, there is support around $1,765-$1,780, Otunuga points out. 

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