Gold is currently at trend resistance that has been holding since Sep 2011. Given the recent moves in the commodity it is likely that it will continue its rise. Should we break over the 127x it is likely to rally to 1308 as can be seen from the chat. However, breaking the long term resistance the rally in Gold could continue to 1375 before seeing any significant downside.
Furthermore DXY somewhat supports this view given it has been in a bearish outlook for the past couple of months. News agencies back in Feb/March have reported that major investment banks have been dumping their dollar reserves which adds bearish bias to DXY and a bullish bias for GOLD.
On the downside in GOLD. If gold does not push through this level, we could see it retrace down to 1170.
Safe and Successful Trading.
Furthermore DXY somewhat supports this view given it has been in a bearish outlook for the past couple of months. News agencies back in Feb/March have reported that major investment banks have been dumping their dollar reserves which adds bearish bias to DXY and a bullish bias for GOLD.
On the downside in GOLD. If gold does not push through this level, we could see it retrace down to 1170.
Safe and Successful Trading.