The price of gold is battling its way higher in early trading as the shiny metal moved higher as bargain hunters stepped in to the market in hopes to take advantage of lower prices.
February's futures for gold are up $15.20 or 0.95% a troy ounce on the New York Mercantile Comdex Exchange.
Gold's trading range thus far is from as high $1,615.40 to as low 1594.10 while the SPDR Gold Trust ( GLD , quote ) ETF, which seeks to track the price of gold, is trading higher by $1.91 -- up 1.23% at $156.78.
Gold's price move is on the heels of Spain ability to raise more than 5 billion euros ($6.55 billion) in its latest debt auction on strong demand help by lower borrowing costs from the ECB's three-year loans.
The lift in gold price is also spilling over to silver, adding $0.496 or 1.72% for a price of $29.97 a troy ounce. The iShares Silver Trust ( SLV , quote ) ETF, which seeks to track the spot price of silver, is trading at $28.59 up $0.63 or 2.22%.
On the technical front, gold's price chart has needed repairing before most technical traders will step in.
Looking at the daily chart, traders find the downward Fibonacci wave extending from the high at $1,923.70 (A) to $1,533.30 (B) with 0.618% retracement (C) accompanied by an even star at the 0.618 level.
On December 13, price action sent the T3 Tilson below the 150-day moving average along with a close below the 150-day moving average to only continue the slide with a close below the 200-day moving average the next day.
In today's trading, price is attempting to test the 200-day moving average.
Gold bulls can consider looking for entry points of a close above the 200-day moving average while more conservative traders may want to consider a close above the 150-day moving average.
Gold bears can draw a trendline below the bottom of the candle wicks from December 15 through today and look for a close below the trendline for conformation of the continues downtremd.
Most analysts are looking for gold to continue trade to the inverse of the U.S. dollar. Which could present traders with a pair trade.
Traders can gain exposure to the the U.S. dollar through the Power Shares DB US Dollar Index Bullish Fund ( UUP , quote ) ETF which seeks to track the price and yield performance of the Deutsche Bank Long US Dollar Futures index.
The index is comprised solely of long futures contracts. The futures contract is designed to replicate the performance of being long the U.S. dollar against the euro, yen, British pound, Canadian dollar, Swedish krona and Swiss franc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.