The technicals suggest that gold price action is in no hurry to go anywhere as we get things going in the new week
The drop lower at the end of last week after encountering key resistance levels put sellers back in near-term control for gold and that hasn't changed as we get into the new week.
As of now, the 200-hour moving average (blue line) is what is helping to keep gold upside in-check as sellers retain a more bearish near-term bias.
However, there is also no strong desire to push towards $1,800 yet as price action lingers just below $1,820 in European morning trade today.
That keeps gold price action in a bit of a bind as sellers are in control but not really pushing the agenda all too much. The technical struggle in gold this year is also much reflected in the conflicting fundamental story as well - now that we have moved past the seasonal tailwind from December to January that is.
While breakevens are tracking higher as real yields continue to keep lower (positives for gold), ETF positioning continues to be trimmed in recent weeks:
I'm still a big fan of gold and silver in general, but the former may still struggle for traction until there is more buying appetite coming back into the market.
As such, while real yields (as long as it is depressed) may be supportive of a push higher in gold in the long-term, a further flush to the downside cannot be ruled out.
