Gold prices could move modestly higher with some help from emerging markets, namely China and India. However, the dollar has recently retreated in noticeable fashion, helping aid gold’s ascent along the way.

Indian demand is vital for gold because the country is the second-largest buyer of the yellow metal behind China. India, one of the world’s largest gold consumers, could be set to lower its import tax on bullion, which could be major catalyst for gold prices. Still, emerging market demand for gold has not picked up yet. For instance, China has shown little demand, with the Shanghai Gold Exchange seeing little growth in volume.

“For the SPDR gold ETF, in particular, a breach of $120 will be the sign of a renewed uptrend, especially if we see that 200 DMA pick up out of its currently flat trend. Should $120 be breached, near-term upside looks to be $125, perhaps no later than a month, with $130 likely the upward bound by the end of Q2 2017,” according to Seeking Alpha.

For more information on the gold market, visit our gold category.

Tom Lydon’s clients own shares of GLD.