Has Gold Run Its Course?

London (April 24)  Gold will see an interesting week of trading as we finally get some specifics as to the current administration's tax plan. Not only that, but the French elections have just completed their first round of voting and markets are taking a sigh of relief. The solution of this highly anticipated event should bring about a reduction in volatility during the upcoming week. Many of the global macro risks that were on the table just a week to two weeks ago have begun to settle, as well, and it seems apparent that the need for gold in the upcoming week will decrease.

Will Gold Pullback?

The last two weeks have been impressive for those who have taken on a long position in gold. A resurgence in volatility across the global has bumped up the need for safe haven assets like gold and after gold spent a few weeks under its 200 DMA, it spiked above and is now currently trading around $1,285/oz. The next clear resistance level is $1,300/oz, but for that level to be broken, we're going to need to see a larger amount of volatility than what was present the last two weeks and that may be a difficult feat to accomplish.

Source: London