Spot gold continues to move higher and has broken above the top of the daily ichimoku cloud (at $1272) for the first time in months. The commodity is testing key resistance at $1278 (the 38.2% of the 1433 to 1182 sell-off), which also coincides with the January 27 high. The daily MACD is above zero and pullbacks right now look like good buying. There is plenty to focus on in the US tonight, with NFIB small business optimism at 23:30 (which is currently at multi month highs), while the key focus will be on Janet Yellen's first public speech as Chairman in front of the House at 00:30. I cannot see Ms Yellen being overtly dovish as she is still speaking on behalf of the Fed collective

Canaccord Colts

Interesting. I agree. Though Plossers also been suggesting acceleration of QE withdrawal. If Yellen discusses that then we should see some vol!

Canaccord Colts

Good info Chris thanks. If Yellen is hawkish as we both expect, could golds current bounce look premature, and gold equities' rally even more so?

Chris Weston

could halt the rally to a degree, but think the clever money feels she will echo comments of late from Plosser, Evans, Fisher (even Rosengren) and give impression for the Fed to deviate from current path is a high barrier.