Gold is trading near the higher marks of its short-term range. As of this writing the precious metal is near 1261.00 USD. If Gold should be able to break above the 1265.00 value it might find enough stamina to test earlier January highs. Caution appears to be fairly steady within current market conditions particularly on the equity side. However commodities have been trading higher since the beginning of this year after reaching lows.
The question is if this current bounce are from speculators looking to buy low and catch a bounce or a real reversal in fundamentals? Digital Markets Advisor continues to be sceptical about global demand within the physical resources. Thus we feel that it is likely that current price action is a short-term reaction to lows and that bears will continue to be a force in the marketplace. Having said that short-term and long-term trading are entirely two different birds and should be treated as such. Gold may find enough backing to rise the remainder of this week.