Gold broke through the resistance level at $1,850 as the weakening US Dollar, some bits of risk-off on stock markets and a final attempt of the Trump team to renew its campaign against China pulled up financial demand for bullion. Moreover, the drop in the price of the last few weeks has lifted physical demand, generating the perfect environment for a rebound for the spot price. This is exactly what we have seen in the last few days, when gold was able to jump up from the four-month-low and recover, surpassing the key level of $1,850.
Technically, the short-term trend remains supportive, while enlarging the zoom, there could still be some bearish pressure due to some profit-taking and the continuation of the risk on approach seen in November albeit with the odd day of exception, like yesterday.
