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Bling bling! Gold hit a fresh all-time high this week when it reached $1,282.53 per ounce. In my previous post about gold last September 2 (please see it here<\/a>), I noted that it was already poised for an upside breakout at that time. And guess what, it did just that as it surpassed its previous high at around $1,265.05 per ounce. At present, gold is trading just below $1,280.00. If history repeats itself then it could be up for a short term dip. Notice that some time the other week, gold formed a doji candle which led to a temporary correction. A similar doji formation can be seen at the present which means that gold could once again dip slightly. The stochastics, being in the overbought territory, also suggest the same movement. Nonetheless, gold should find support at either the previous high that it surpassed or at the uptrend line. And until this line gets broken and gold reverses, it should continue moving towards more uncharted areas.<\/p>\n With gold hitting fresh highs, long traders could lock in their profits in the mean time especially before the US Federal monetary policy decision this coming September 21. A weak US dollar has contributed a lot to the jump in the gold\u2019s prices so if the Fed holds its interest rate unchanged and its quantitative easing as is then a weak dollar may ensue once again. Earlier, Fed Chairman Ben Bernanke indicated that the central bank could introduce more QE measures if warranted. Having said that, it is likely that the Fed will maintain its policies at an extended period of time to support the economy\u2019s rebound. If such is the case, then a frail US dollar, and therefore, a stronger gold, could arise.<\/p>\n A rise in the prices of gold, as you know, would be reflected in the prices of the commodity dollars (Australian dollar, New Zealand dollar, Canadian dollar, and Swiss Franc) since these currencies enjoy an 80% correlation with the price of gold. The mining sector, particularly the gold miners, would likewise benefit from a jump in the prices of gold. As for me, buying into any these would be a good play as of the moment.<\/p>\n