FxWirePro: Gold above $1200 for first time in two months, close to resistance zone

The recent weakness in the dollar, partial unwinding of Trump trade and uncertainties with regard to Trump’s policies and the UK government’s approach have pushed the yellow metal to trade above $1200 per troy ounce today, for the first time in two months. While we remain fundamentally bullish on gold at FxWirePro, we don’t think that the short-term headwinds from a stronger dollar not over yet. The dollar is most likely to be taking a breather. Even if that’s not the case, the yellow metal has hardly given any confirmation to go long yet. $1150 per troy ounce area has been a strong area of resistance and we think that the current rally is more of a correction than a reversal.

We would recommend our readers to remain cautious at this point rather than jumping on the break as the yellow metal is clearly approaching the resistance zone, which stretches from $1195 per troy ounce to $1230 per troy ounce.