Gold is up by 1.03% currently
Things are still looking up for gold here as the commodity is continuing to capitalise on dollar weakness seen this week. Price is now extending to the highs for the day and is looking to take out the 200-day MA (blue line). If buyers manage a break above that, the bias and momentum in the pair will then turn more bullish.
That opens up further upside to resistance from the 50.0 retracement level @ $1,262.80 and the July high @ 1,265.99. But beyond that, there is good reason from a technical perspective to see a move heading towards $1,300 again.
While gold has lost its allure this year as a go-to safe haven, it still is one that trades rather well in relation to technical levels and also based on the dollar’s performance. And from a technical perspective, the break of the 200-day MA for the first time since May is a key sign that buyers are looking to get back in the driver’s seat.