It is now been a couple of weeks in which the correlation between gold and stock has been positive, with both moving in the same direction rather than their more typical inverse relationship. Yesterday saw stocks in red with gold also losing ground, while today bullion is recovering in conjunction with markets in green.
Technically the price is again approaching the key level of $1,700. There is now quite a solid support zone placed at $1,675 and a clear break above $1,700 could open space for further rallies. The resistance areas, where we would expect gold to struggle to continue its recovery, are placed at $1,710, at $1,735 and $1,747, which is the recent high reached on April 14.
