Gold consolidates the biggest weekly gain since 2016

DXY is up +0.10% while Gold consolidates.
Gold awaiting fuller markets with eyes to higher levels.

Ross J Burland FXStreet

After logging its biggest weekly gain last week since 2016, Gold is flat on the US session so far, consolidating the recent recovery rally from $1,318.23/oz lows scored last week where the reversal met highs of $1,361.66.

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There is a major focus on the precious metal at the moment given the recent rout in stocks and the continuation of the dollar's downside developing to critical levels. Currently, gold is trading at $1,346.69/oz, with a low of $1,345.78/oz and a high of $1,351.58/oz.

Eyes on the greenback

The US and Canada are out today and China was out overnight, so market activity is registering a zero until desks return tomorrow. Nonetheless, as a measure of the buck’s strength against six other currencies, the gauge on the DXY has been moving, currently at 89.193 and up +0.10% so far at the time of writing, trading within a range of between 88.955 - 89.442 and down over 3% YTD.

Gold levels

The 10-D and 21-D SMAs remains bullish after the price was supported at the 10-W SMA of 1314 recently. The psychological 1350 mark has been taken out and a new target has been set for 1362 and 1366 YTH. To the downside, 1320, 1314, 1310, 1293 and 1279 are key levels of support.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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