As short-term yields continue to spike higher, expecting a more hawkish Fed action, precious metals decided it is the best time to start a new uptrend for some reason.
At the time of writing, gold was soaring more than 1%, and it flew above the 1,800 USD threshold without any complications.
Gold managed to jump above the 200-day moving average, switching the medium-term to bullish again. However, the metal has not moved anywhere in more than a year, so it remains a perfect opportunity for short and medium-term traders, but long-term investors suffer.
Additionally, the bullion was supposed to be an impressive hedge against inflation. Still, so far, it is the worst-performing commodity, and it is well below the actual inflation, offering no protection or hedge whatsoever.
The support now remains at the 200-day average at 1,795 USD. As long as the metal trades above it, the short-term outlook seems bullish.
The key resistance is still at previous highs near 1,830 USD, and maybe the fourth time will be the charm. Should gold breach that level to the upside, it could advance toward the 1,900 USD level quickly.