Gold at 1.5 Month High

Gold registered a new high today going above $1,190 for the first time since 30 November last year. The precious metal has been gaining in price since 15 December when it reached a low of $1,123 and then started going North.

Although the asset looks clearly bullish, going long for the short-term might turn out to be a bad choice. The odds are still in favor of the US dollar as we approach the Inauguration day when Donald Trump will officially be elected as President of the United States. In light of this, markets might react excesivelly volatile without any reasoning behind it.

Best decision would be to remain cautiously optimistic and observe the turn of events with a clear head to not fall prey to the desire for quick money on news trading.

Current Gold price is trading at resistance and if bulls want to continue their rally they need to go above the psychological $1,200 in order for them to have an edge against their peers.

Chart: XAU/USD H4