Trades to new session highs
The price of gold has been consolidating over the last few months. The November low reached down to $1445. The high since that low has extended up to $1486 (reached during trading last week).
Today, the precious metal is currently trading at session highs for the day. The price is up $5.76 at $1481.18. The low today reached to $1473.33. The high extended $1481.76 so far.
Technically, looking at the daily chart above, the price is approaching a topside trend line at the $1482.96 level. That trend line was tested at the highs from last week. Also at the level last week was the 100 day MA (blue line). Traders leaned against level and the price rotated back to the downside.
If the topside trendline can be broken, the same 100 day moving average still looms above at $1491.64. Move above each and there should be additional momentum to the upside for the precious metal.
On the downside, the price has been respecting a lower trendline currently at $1461 (and rising). There are a number of swing lows that stalled just ahead of that lower trendline (see green numbered circles)
Until there is a break above the consolidation trendlines, traders may continue to play the narrowing range. However, at some point, there will be a break and run away. Be aware.
