Tight Range As Gold Registers Fresh Cycle Highs

Gold consolidated recent gains in what was still holiday-thinned Asia-Pac dealing, managing to register a fresh cycle high in the process, while operating in a narrow range, last dealing little changed, just below the $1,950/oz mark.

• This came as the broader USD also held to a narrow range, just above its recent cycle base, while U.S. Tsy yields were little changed.
• Known ETF holdings of the yellow metal have ticked away from their cycle lows in recent days but remain well shy of their ’22 hig, which in itself is shy of the ’20 all-time peak.
• Technically, trend conditions in gold remain bullish. The fresh cycle highs confirm an extension of the uptrend and maintains the price sequence of higher highs and higher lows. Moving average studies remain in a bull mode position - reflecting the uptrend. The focus is on $1963.0 next, a Fibonacci retracement. Conversely, support to watch lies at the 20-day EMA. Short-term pullbacks are considered corrective.