Gets a kick higher
The US dollar has been moving lower and typically, the price of Gold reacts in an inverse direction. Yesterday when the dollar was falling sharply - particularly against the EUR - gold rose but stayed below the 200 hour MA (yellow MA line in the chart below) at the 1063 area.
In the last few hours we are seeing a push above that MA and an increased upside surge as a result. The price is up to 1087 area currently. The 38.2% of the move from the October high targets the 1098 area. The price today has reached 1088 area which corresponds with the high from October 20. This may stall the rally.
Looking at the daily chart, the pair has moved back above the lows from July and August at the 1078-1080 area. This will now be close support. Stay above the buyers remain in control.
ON the topside - in addition to the 1088 area - the low from September 11 at 1098.80, and the high from November 16 at the 1098.24 level along with the 38.2% at the same area, increase that areas importance as a key target to the topside.
