Gold has had a mixed start to the year rising 1% YTD, however is currently outperforming most equities.

Technicals

After hitting levels of $2070 at the start of March, gold has tumbled down, breaking through a historical support region of around $1855 (gold area); eventually finding new support at around $1785 (white area). This level had acted as both a resistance and a support from the back-end of 2021 into February of this year, and now has the potential to be the ‘head’ of an inverse head-and-shoulders pattern. With the second ‘shoulder’ materialising at the $1855 mark, investors will look to see whether gold can breakout beyond these levels back towards the $1900 and $2000 regions and flip the gold area into a support once more.