Buyers show up
The dollar is the weakest currency of the majors today and that is fueling a rally in the price of gold.
The precious metal has been ignoring all the trade tensions and political concerns that perhaps in the past had led to a flight into gold and instead been focused on the dollars moves. That trend has been higher but today and more recently, the dollar has been weaker. As a result, we are seeing a rush into gold. Today the price is up $21.38 currently or 1.80% at $1207. Big day up.
The price action has taken the price above the $1200. That is a bullish. That level was breached on Wednesday but could not sustain above the level.
On the daily chart, we also moved above a trend line at $1194.50. Bullish.
The next target is the $1217.30 level which is the 38.2% of the last trend leg down from the June high (see chart above).
Drilling to the hourly chart below, the pair moved lower yesterday and back below the 100 and 200 hour MA (blue and green lines). Today, however, those MAs were broken, with upside momentum. A topside trend line was also broken.
The price is currently trying to get and stay above the 61.8%, and a swing low area from earlier in August at around that area as well. That area is close enough to the $1200 to think that it is the reason for the floor. So stay above $1200 keeps the bulls in charge.
It's a gold rush today. Blame the dollar and the technicals are helping.
