Current
By yesterday’s close, the XAU/USD rate (the price of gold relative to the dollar) had risen by about 0.9%. So far today, the share price has continued to move upwards at +0.5%. The price started the short-term uptrend after a low at around $1617 and has since risen by almost 12% at times. Reasons for the recent stronger increase can be found in the weakening dollar development and also the recent recovery of the stock markets. In today’s rise, the price is just trying to overcome the 200-day moving average.
Analysis
In the current uptrend since early November, the price has marked a short-term high at around $1810, where resistance has emerged. Before that, the price has secured a relevant support in the area around $1737. If the price continues to stay above the support and respects it, this can be interpreted as a bullish signal and further rises could take place.
Conclusion
Moreover, as can be seen in the chart, the gold price already made a first move upwards in November and then in early December. This could continue until the end of January / beginning of February due to the seasonal effects mentioned above.
