Gold looks to get back on track in January trading

<p>The US PPI data on Friday certainly sparked some notable moves in markets, with the standout being in the <a href="https://www.forexlive.com/news/the-incredible-bid-in-us-2-year-notes-continues-20240112/" target="_blank" rel="follow">front end of the curve</a> in Treasuries. At the same time though, that sparked a revival in gold that has seen a major technical turnaround as well:</p><p>Ahead of the data, gold took out its 200-hour moving average (blue line) and key trendline resistance before holding that break in US trading. The high clipped just above $2,060 before being pulled back a little, with the 61.8 Fib retracement level of the recent swing lower at $2,059.83 keeping a lid on gains for now.</p><p>But looking at the chart, it's been a solid turnaround in the technical momentum for gold. The near-term bias, as seen above, is now one that is more bullish after having seen sellers hold on to control all through the opening stages of this year.</p><p>On the month itself, gold is now just down 0.4% as it looks to try and make up for the poor start to the new year. Typically, the January seasonal pattern is one that works in favour of gold but as mentioned before at the end of last year, the technical limitations could impede with such flows this time around.</p><p>And even with gold having halved losses already on the month, the key weekly resistance from the 2020 highs around $2,073 remains the big challenge. And that is just roughly 0.9% away from current levels, so there is a sort of ceiling nearby that could see gold upside stall in the meantime. That unless the bond market continues to see similarly strong bids from last week.</p>

This article was written by Justin Low at www.forexlive.com.