Gold fades after a double top at $1850 but remains solidly higher on the day | Forexlive

One of the oldest, strongest seasonal patterns is gold strength in January. More recently, that trade has been front-run in December but it’s certainly not dead given the uncertainty around deficits, the status of the US dollar and monetary policy.

To start the year it surged to $1850 and after a dip in Europe, it touched that level again but couldn’t get convincingly through, leading to a double top and a dip to $1827. Yet the bulls regrouped and have bid it back to $1838, despite a strong US dollar and tough tape for risk assets.

That’s a good sign and if $1850 can break, there’s some technical blue sky up to $1880.