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The US dollar traded higher during the early part of the week, but now it seems to be lagging momentum. This caused a minor upside in GOLD and helped the yellow metal buyers to take the prices higher. The recent releases in the US also went in the favour of sellers. We need to see how the US dollar trades in the coming sessions. There is a possibility that the US dollar has made a short term top and if that is the case then GOLD might continue trading higher. The US initial jobless claims and the pending home sales data will be published later during the NY session, which are likely to cause swing moves in GOLD.
There is a bullish trend line formed on the hourly chart of GOLD, which is likely to act as a buy zone for buyers. The most important point to note is that GOLD is now trading above the 100 and 200 hour moving averages, which is a bullish sign in the short term. Moreover, the mentioned MA’s are above the highlighted trend line. So, if GOLD moves lower from the current levels, then it might support around the $1190 level. Moreover, the 50% fib retracement level of the last leg from the $1178 low to $1210 high might also come into play around the $1194 level.
On the upside, the $1210 level is a major hurdle for GOLD buyers and it won’t be easy for them to take it above the mentioned level. A break above might call for a move towards $1230.
Overall, one might consider buying dips in GOLD as long as it is above the 100 MA.