Report that China ready to buy US bonds is helping
There was a report overnight that China was ready to buy more US bonds. That sent rates lower (bond prices higher) and gold higher as well.
The price is currently trading at $1294 up about $14.47. The high price reached 1295.30 so far. The low was down at 1275.24.
Technically, looking at the daily chart, at the high, the price tested the high price from April at 1295.65. So traders are leaning against the level on the first look. That is not surprising as risk is defined and limited. On a break, however, look for additional buying.
What would confirm the double top has the potential to correct further?
Sellers against the high have a reason to trade and can define their risk. However, the price has been trending higher today.
Drilling the 5-minute chart, the price started the rally near the 100 and 200 bar MAs today. The move higher has been able to stay above the 100 bar MA on the way higher. The last correction came down to that MA line, held and is now moving back higher. If that 100 bar MA holds support, the buyers are still in control. If there is a move below, the buyers today may take the double top a little more seriously as a peak. We should see further corrective action on a break of that MA line. It currently comes in at 1290.91.
