Gold Higher

Gold has been trading to the upside for the last couple of weeks. Price reached a low of $1,236 on 12th Dec and has been on the upside since then reaching a high of $1,268. Current market price is $1,263, slightly lower than the highest high but still showing signs of strength.

As the US dollar is depreciating, market participants flock to safety into the precious metal. Bulls' first target is seen at $1,275 which would break the support turned resistance and would suggest that Gold is ready to push higher to the psychological $1,300 level.

On the other hand, gold bears could try and bring the price to a double bottom level at $1,235 and possibly even lower if the US dollar stabilizes.

The remainder of the year is expected to present a calm trading environment as market participants will most likely trade lighter volumes in exchange to more time spent with family and loved ones during Christmas time.

Chart: XAU/USD H4