Gold Rises as US dollar Weakens

07 / 06 / 2018
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The price of gold ticked higher on Thursday and was seen hovering just below the psychological level of 1,300 USD during the London session.

The EURUSD pair jumped again on Thursday and was trading around 1.1820, with the US Dollar weakness prompting investors to buy the bullion today. Investors will pay attention to the usual Thursday’s jobless claims, which are projected to stay near last week’s figures.

Technically speaking, gold is still defending the key bullish support trend line, which is now around 1,294 USD and while the price remains above, the short-term outlook seems bullish. The price has tested this support line in the previous days many times and so far it has managed to hold it.

The first strong resistance is around the 1,300 USD level and if broken, the next selling offers will be located at 1,308 USD, where the 200 day moving average is located, along with previous lows.

On the downside, should the price break below 1,294 USD, the next target for bears would be at May’s lows near 1,282 USD and the trend could switch to bearish quickly. In all cases we strongly recommend to have rigorous money and risk management.

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