Trades at highest level since March 2014
The price of gold has moved above the post Brexit spike high at 1258.50 area and has traded at the highest level since March 2014. The yellow metal looks toward the 38.2% of the move down from the 2011 swing high to the low reached at the end of 2015. That level comes in at 1381.42. The 50% of the same move lower comes in at 1484.48. I would expect traders to also respect the 1400 level on the first look.
Looking at the hourly chart below, the Brexit high at the 1358.50 level was matched on July 4th. The break higher today caught the interest of technical traders too and that has helped propel the pair higher. Needless to say, that level now becomes key support (a line in the sand) for the bulls. Stay above and look toward the 1400 level. Move back below and the move above will be a failed run and the lower trend line will be eyed (see chart below)
