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The US dollar climbed higher against most major currencies recently with the Euro being the worst performer. However, the yellow metal managed to gain bids and climbed higher. GOLD took the advantage of current market conditions and moved higher. It is following a nice bullish trend and looks set for more gains in the near term. There are a couple of releases lined up in the US today during the NY session. The US retail sales data will be published by the US Census Bureau. Moreover, the Fed’s beige book will also be released, which has the potential to ignite moves in the US dollar and GOLD.

There is an important bullish trend line formed on the hourly chart of GOLD, which acted as a support for GOLD on more than two occasions. A crucial point to note is the fact that the 100 hour moving average is sitting around the highlighted trend line. GOLD is currently testing the same trend line and it looks like sellers are struggling to break it. Moreover, the 50% fib retracement level of the last leg from the $1205 low to $1244 high is also around the same area. So, one might say that there is a monster support around the $1225 level. GOLD might trade higher in the near term if buyers gain control.

On the downside, a break below the highlighted support area might invalidate the bullish call in the short term and could take GOLD towards the last swing low of $1205.

Overall, one might consider buying dips in GOLD as long as it is trading above the bullish trend line and 100 MA.

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Posted By IKOFX Technical Team: Online Forex Broker
Website – http://ikofx.com