GOLD: The Gold Rush Continues to $1325.00
Last weeks Gold analysis was shot out of the water on hopes that the U.S. Federal Reserve will keep interest rates unchanged during its 2-day policy meeting later this week. Mooning to almost 1304.00 on Friday afternoon, Gold tends to appreciate on expectations of lower interest rates, which reduce the opportunity costs of holding non-yielding bullion.
With the long-awaited breakout above 1300.00 key level of resistance, it is likely to see further upside for Gold from a technical perspective.
The Fed meeting this week could also be a catalyst for further USD selling pressure, as could positive Brexit developments, reinforcing the long bias on Gold.
Technicals for the DXY are looking interesting at the moment as we have fallen back into the 95.50-96.00 range but haven't yet retested the bearish trend line after breaking above it last week, this area could prove a strong support floor alongside the 95.00 level. Just something to bear in mind for Dollar downside headwind against Gold's upside potential.
Upside targets for Gold are;
Target 1 - 1313.00
Target 2 - 1325.00
Written by Sam Moore
Instagram - @Moore_Fx...