Gold Price Tests Important Resistance with USD Weakness
The gold price has rallied strongly from the $1,800 level after US Dollar weakness continued. The precious metal is now testing the key $1,863 price and this will determine the next direction for gold.
The price of bullion is advancing after the US dollar index fell further through an important support level as investors shy away from the greenback. An imminent stimulus package from Washington has the dollar on the back foot but there is also still election risk overhanging. This should be resolved in the next two weeks with a Supreme Court court case from Texas and the meeting of State electors.
Gold options investors are positive for further gains with bets in companies such as Newmont Corp. and the index tracker GLD. The options were bought with 1900 strike prices but the price will have to overcome this $1863 resistance to find a path there.
Gold Price Technical Outlook
Gold has rallied to test the $1863 level in the last week and this will be key to the next path. This level provided support four-to-five times since August and the recent break led to a tumble to the $1800 level. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.