Gold Approaching Resistance

After the significant EUR/USD move to the upside, Gold was the asset that also gained in value in face of a depreciating US dollar. The precious metal is now trading at $1,294, up from $1,236 just two weeks ago.

The increased interest in the safe haven is due to the uncertain economic condition in the US and the latest interest rate. Gold is now faced with the opposition at the psychological level of $1,300 where a lot of Gold bears would jump in attempt to bring the price down. First bear target is seen at $1,275, second - $1,250 and third - $1,235.

If bulls are able to break through resistance we might see Gold shining again with new strength. Major bull target is expected at $1,300 which would then act as major support level.

Chart: XAU/USD H4