Gold is up by more than 0.7%, hitting a session high of $1,286.35
And price is now knocking on the door of a test of the 61.8 retracement level @ $1,286.97. The dollar is mixed on the session but that is not stopping bullion from pushing forward with gains to start the new year.
As Adam pointed out here, January seasonality has always been a big tailwind for gold to rise (it has done so in each of the past five Januaries) with heavy buying ahead of the lunar new year usually the reason for that.
Aside from that, markets are also seen to begin adopting a narrative of a more dovish Fed and that will work against the dollar while at the same time work in favour of gold as well. And with the dollar losing some of its allure as a safe haven as a result, gold could start relying on its traditional flow to give renewed backing to further upside as equities continue to be caught in the crossfire of slowing global economic growth and the US-China trade war.
