Gold is nearing what could be an ultra-bullish key level
Gold's relationship with inflation expectations has gotten interesting lately, and I'm watching one key level for gold in particular.
Consider this conundrum in the gold market: The metal has traditionally been a good hedge against inflation, but it hasn't seen much demand lately even in the face of rising inflation fears. It's not like gold hasn't rallied, of course; it's up a little over 6 percent since mid-December.
Still, the yellow metal hasn't broken out.
In fact, it has tested key resistance of $1,375 per ounce, but it hasn't managed to break above that level. The $1,375 mark was the metal's highs from both 2016 and 2017, so a break above that line would give gold a technically significant "higher high."