Gold has entered a bullish phase at Christmas time in the last few years and the last few days look to have confirmed that trend for this year too. After a six-week period of very little volatility, the price has managed to break through the resistance level placed at $1,480 to jump above the psychological threshold of $1,500.
From a technical point of view, the trend is back to the bullish mood that marked the first part of 2019 and this quick recovery of $1,500 could be another positive element. Investors are still looking to the trade war as the main market mover over the next few weeks, even if there has been no significant news to justify this surge. Instead the driver appears to be mostly technical following the breakup of the trading range between $1,450 and $1,475 in which the price was trapped for a few weeks. The first target is placed at $1,512, which was the peak reached by bullion earlier in November, while the next key levels are at $1,530 and $1,550-$1,555, where we can find the 6 and a half year high for bullion.
We should also note that the breakup of the resistance placed at $1,475-$1,480, also means the breakup of the bearish dynamic trendline that we can obtain from linking the peaks of early September and early November.
