Gold turns positive and trades to new session highs

Technical Analysis

Author: Greg Michalowski | gold

Reaches a new intraday high of $1869.54 after finding early support buyers against its 100 day moving average

The price of gold reached a new 2 month low (going back to July 22). That low reached $1848.88. It got close (sort of) to its 100 day moving average near $1844.

Gold on the daily chart
Since then, the price has rebounded higher and currently trades up about $6.70 or 0.36% at $1869.90. The high price just reached $1870.20 as I type.

Drilling to the hourly chart below, the pair has moved above a downward sloping trendline and is running more to the upside. The next target comes in at a swing level from yesterday at $1873.23. Above that is the swing low from September 21 at $1882.51.  

Above that traders will be eyeing the $1896.52 to $1900 area.  

Gold on the hourly chart
The USD is trying to make a move off the lows. The EURUSD is trading at North American session highs. The USDCAD is making new day lows. The AUDUSD and NZDUSD are bouncing low.  If the moves lower in the dollar continue, we could see further upside potential for the precious metals.
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