Gold has had a great start to the year, rising for the third time this week and hitting its highest level since June. It is up $3 today at $1,867, just $10 away from the June 2022 high of $1,877. Gold Inverse Head January 2023 A break of resistance at $1877 would also trigger a bullish inverse head and shoulders pattern on the daily chart. The measured target for this formation is $1975. Gold has been competing with crypto for a share of the investing public’s attention over the past few years. While gold has not come close to bitcoin’s rise, it has also avoided the downside and much of the volatility. Turmoil in the crypto space could revive interest in gold. At the same time, countries hostile to the United States seem to be turning to gold after Russia closed its dollar reserves. Government gold purchases – including by China – increased in the third quarter and are likely to continue in the fourth quarter.
