On July 21 gold prices moved above $1250 for the first time in a month, and have recovered over $40 from their recent declines over the past three weeks. And while gold appears to be in a definite upward trend since it crossed over its 200 day moving average earlier this week, the dollar continues to fall as it now has broken below 94 on the dollar index.
Gold Chart:
Dollar Index:
On Friday, gold breached thresholds that market technicians tend to view as indicating a bullish trend is under way. Notably, gold prices are trading above their 100- and 50-day moving averages, both around $1,250, as a broad measure of the U.S. unit, the ICE U.S. Dollar Index DXY, -0.33% which compares the buck against a half-dozen other currencies, traded about 1.7% lower month to date. On Friday it was down 0.3%, with the euro EURUSD, +0.3955% which represents the biggest weighting in the ICE dollar gauge, up 0.2% versus the greenback.
“The dollar has been under serious assault, which has pushed the price of gold higher,” said Naeem Aslam, chief market analyst at ThinkMarkets UK. “As long as the dollar bleeds, we do think that the gold price would continue to move higher and could touch the level of $1,300.” - Marketwatch