Gold is keeping a little higher today near $1,720
Upon a firm break of the $1,700 level, gold is holding steady at fresh highs last seen since December 2012 as buyers go in search for a topside break.
A key spot to watch this week will be the 76.4 retracement level @ $1,714.73 but beyond that the path remains open for gold to aim towards the $1,800 level next.
The turnaround in gold has been rapid, as liquidation trades are put behind and the focus turns towards economic worries as well as unprecedented Fed, global central bank easing.
The latter in particular is what is really making the gold trade look more attractive by the day although there are still some things to worry about.
Deflation focus is one of them but the market doesn't seem to be too particularly concerned by that right now and there's also the issue of the gap between spot and futures prices.
Depending on how that settles, it could also be a catalyst for movement in gold spot price so that is something to be wary about in the sessions ahead.
But from a technical perspective, a hold above $1,700 this week will be a good platform for gold in chasing a move to $1,800 next.
Even if that doesn't pan out in the near-term, the long-term prospects for gold remain as attractive as ever given what we are seeing with central bank policies across the globe.
You can't really ask for more as a gold investor than low rates and low/negative yields for a prolonged period of time.
