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Gold – Can anything stop the rally?

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No stopping Gold it seems

Gold is flying once again as it looks to extend its winning streak to six days and build on the almost 7% gains it’s made in that time.

Gold Daily Chart

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All you have to do is look at a US dollar chart to see what the trigger for the surge has been.

US Dollar Index Daily Chart

Source – Thomson Reuters Eikon

Previously when we’ve traded around these levels – and for that we’re talking earlier this decade – $1,440 has been a notable area of support and resistance which may explain why we’ve seen some profit taking around here today.

What’s interesting is that we the rally doesn’t seem to be dropping any momentum so there may be some more room to run. The MACD histogram failed to make a new high during the most recent peak in price so some divergence may be creeping in but everything else looks ok on the 4-hour chart.

Gold 4-Hour Chart

Above here, $1,475-1,488 was also interesting previously so perhaps we’re entering into a crowded area where momentum may start to slip.

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Craig Erlam

Craig Erlam

Former Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary.

His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News.

Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
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